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Long Term Capital Management was ran by Nobel laureates in economics (or its equivalent), it was FTX before FTX was a glimmer in SBF's effective altruism narrat
by melony 4y ago
Long Term Capital Management was ran by Nobel laureates in economics (or its equivalent), it was FTX before FTX was a glimmer in SBF's effective altruism narrative. Academic authorities these days are not worth appealing to.
- bogomipz 4y agoI don't really understand the comparison of LTCM to FTX. Long Term Capital Management was a hedge fund. Hedge funds entire model are based on leverage and making big bets. Its customers were wealthy accredited investors and institutional investors who well understood this and understood the risks associated with hedge funds. FTX's customers had no such understanding that their deposits were being loaned out and used for making big bets.
- homeland221 4y agoReading up what available publicly on FTX saga, it is clear they do make big bets in cryptos while misusing their funds. We will wait for the FTX book written to know more detail.