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One of the lessons of the 2008 financial bubble is that financial systems are complex, often arcane, and prone to unexpected failure modes. Or more colloquially
by wpietri 5y ago
One of the lessons of the 2008 financial bubble is that financial systems are complex, often arcane, and prone to unexpected failure modes. Or more colloquially, the devil is in the details.
I used to write financial trading software, so I am reasonably familiar with the topic. But there's no way in hell that I as an individual would use 3 different unknown services to make bets in an unregulated and likely manipulated market. There are all sort of risks there.
If I were managing $100m it would be a different story. I could have analysts carefully looking at the financial risks and a lawyer or two gaming out the legal concerns. If all that looked good, then I might go for a short, because believe it's a fraud. But there's no way a typical individual investor should be making bets like that.