2 ms·
I don't mean to pile on, but dear god. Others are characterizing this as naive. To be a bit blunt, "naive" is a charitable interpretation of the author's intent
by thwayunion 4y ago
I don't mean to pile on, but dear god. Others are characterizing this as naive. To be a bit blunt, "naive" is a charitable interpretation of the author's intent.
TL;DR: if you swipe left on web3-cum-gtp (sic) people when considering investment and collaboration, swipe left here as well. Otherwise, load up on risky bets that these bank fails, comment with your positions below, and please don't gamble with assets your family needs for a comfortable life.
To my critique, in no particularly intentionally order:
1. The weighting of these four statistics is not disclosed. I'm working on figuring out that weighting and will post below if I figure it out.
2. Presentation. The "price to book", "cash eq % of assets", and "Assets / liabilities" columns are presented in absolute terms with no coloring while the "stock price change" is RED RED RED and base-lined from 19 days ago (?).
3. The ranking is already empirically invalid, depending on how you characterize what just happened at CS.
4. Speaking of CS, what does "collapsing" even mean? What risk is being measured here? Risk to depositors? Risk to creditors? Risk to owners?
5. Looking at these rankings, I'm not really sure what role this is supposed to play. I would not use this list to purchase any sort of financial contract or to decide where I should deposit my cash. Even if this list accurately captures the "collapse", for any particular value of "collapse", it's unclear what actual action should be taken...