Re:Sam Bankman-Fried vs. the Match King
by ldjkfkdsjnv on Sunday November 13, 2022 @12:13PM
(#33585010)
A lot of very wealthy people put money into the FTX financing. If there wasn't a major downturn, probably FTX never would have gone under. Us plebeians get a rare view into how business success commonly happens (a network of people force it to happen). Its similar to the epstein scandal, a rare view into another world far removed from the common worker.
[ Parent
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Re:Sam Bankman-Fried vs. the Match King
by dragontamer on Sunday November 13, 2022 @12:20PM
(#33585076)
> If there wasn't a major downturn
There was no downturn when Theranos collapsed. These schemes all eventually break down and tumble upon their lies.
Worldcom also collapsed in 2002. I don't think it was related to the Tech Bubble if I'm remembering history correctly.
Many investment style schemes will continue on until a recession exposes everything. Much like the Madoff ponzi. It went on for decades until a once in a lifetime financial industry blow up exposed it.
Re:Sam Bankman-Fried vs. the Match King
by mannykannot on Sunday November 13, 2022 @12:41PM
(#33585273)
Things that cannot go on for ever don't. The end will likely be correlated with a downturn as that's when more people need to make use of their assets, but the end is inevitable regardless.
A rising tide floats all boats….. only when the tide goes out do you discover who's been swimming naked." This is Warren Buffett's addendum to the famous 'rising tide' quote.
Re:Sam Bankman-Fried vs. the Match King
by deltree7 on Sunday November 13, 2022 @12:44PM
(#33585308)
Worldcom was 100% related to Tech Bubble. It was the quintessential poster boy (along with pets.com and Webvan).
Re:Sam Bankman-Fried vs. the Match King
by caminante on Sunday November 13, 2022 @03:02PM
(#33586753)
Parent is referring to the "collapse," which was post-tech bubble bursting and due to accounting fraud (not a bubble pop).
Re:Sam Bankman-Fried vs. the Match King
by schlumpf on Monday November 14, 2022 @03:23AM
(#33591444)
The accounting fraud was a response to vanishing profitability brought on by the Dot Com bust [0].
[0] https://harbert.auburn.edu/binaries/documents/center-for-eth...
Re:Sam Bankman-Fried vs. the Match King
by caminante on Monday November 14, 2022 @11:06AM
(#33596052)
Your source doesn't make that connection clear at all. I'm not seeing any connection to the bubble, just overlapping years and "technology" keywords.
Can you please quote the paragraph(s) from your source tying vanishing profitability to the "Dot Com bust".
Re:Sam Bankman-Fried vs. the Match King
by JamesianP on Sunday November 13, 2022 @01:59PM
(#33586184)
I've actually known a few people involved (as employees) in these kind of frauds, and whistleblowers or some kind of stupid mistake can expose them certainly.
But the business cycle is what really clears even the most clever ones out.
Meritocracy ain't necessary an illusion, but it would an unreasonable assumption to think that the best and brightest don't mingle as the elite.
It's just another power structure in the end, one that favor a kind of elite over another.