3 ms·

LTCM was a problem because everyone lent to them since they had lots of government bonds to hock as collateral. So that 4.6 billion loss due to impairment of th

by wbl 4y ago

LTCM was a problem because everyone lent to them since they had lots of government bonds to hock as collateral. So that 4.6 billion loss due to impairment of the value of the Russian loans was a huge problem. By contrast no bank would have touched Alameda with a ten foot pole. Loan to a crypto fund?

SevenNation 4y ago
> By contrast no bank would have touched Alameda with a ten foot pole. Would you believe... a pension fund is involved with FTX? https://fortune.com/2022/11/10/canadian-teachers-could-have-95-million-hole-pensions-ftx-crypto-implosion/ https://fortune.com/2022/11/10/canadian-teachers-could-have-... I doubt the full extent of the connections to Alameda (or FTX) have been disclosed.
- qeternity 4y ago
  Would you believe...that pension funds, particularly Canadian ones, invest in lots of risky assets? Also, they invested in the equity, specifically because they're not allowed to hold crypto. In theory, it's also the better risk/reward in the long run i.e. casino house vs gambler (provided the exchange isn't effectively also a hedge fund that blows up).