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>> I’m sorry for your loss but I’m really amazed you thought that 7% yield from savings at a time of 0% interest rates was anything other than a fabrication. T

>> I’m sorry for your loss but I’m really amazed you thought that 7% yield from savings at a time of 0% interest rates was anything other than a fabrication. The guy (SBF) was hanging out with and appeared to be anointed by Gensler and crew https://www.sec.gov/about/commissioners/gary-gensler https://www.sec.gov/about/commissioners/gary-gensler. How much due diligence does one expect common citizens to perform?

mrguyorama 3y ago
Why do you think that made the financials viable?
- TuringNYC 3y ago
  >> Why do you think that made the financials viable? Even a person with a finance background such as myself cannot realistically state what yield is "viable", especially without history. Commercial Real Estate is paying 8.5% preferred these days...is that viable? Not sure, but I can look at history across rate environments. Crypto has no history so I think a lot of people were going on trust of the players. Many investments are about trusting the managers.
  - prepend 3y ago
    These investments were comparable to money market funds. There’s no way passive cash is viable at those returns. If Commercial Real Estate is paying 8.5% and someone starts offering “Crypto Commercial Real Estate” as a competing product for those same fundamentals but offers 400% return, would you still be unable to assess its viability?
    - TuringNYC 3y ago
      >> These investments were comparable to money market funds. There’s no way passive cash is viable at those returns. Totally agree. But why would you compare crypto high yield accounts to MM funds, rather than, say, CLOs or CLO funds, or structured notes (https://pprcapitalmgmt.com/invest-in-a-real-estate-fund/ https://pprcapitalmgmt.com/invest-in-a-real-estate-fund/) or factored receiveables funds
  - __loam 3y ago
    Not sure how strong the commercial real estate argument is rn lol

mrguyorama 3y ago

Why do you think that made the financials viable?

TuringNYC 3y ago
>> Why do you think that made the financials viable? Even a person with a finance background such as myself cannot realistically state what yield is "viable", especially without history. Commercial Real Estate is paying 8.5% preferred these days...is that viable? Not sure, but I can look at history across rate environments. Crypto has no history so I think a lot of people were going on trust of the players. Many investments are about trusting the managers.
- prepend 3y ago
  These investments were comparable to money market funds. There’s no way passive cash is viable at those returns. If Commercial Real Estate is paying 8.5% and someone starts offering “Crypto Commercial Real Estate” as a competing product for those same fundamentals but offers 400% return, would you still be unable to assess its viability?
  - TuringNYC 3y ago
    >> These investments were comparable to money market funds. There’s no way passive cash is viable at those returns. Totally agree. But why would you compare crypto high yield accounts to MM funds, rather than, say, CLOs or CLO funds, or structured notes (https://pprcapitalmgmt.com/invest-in-a-real-estate-fund/ https://pprcapitalmgmt.com/invest-in-a-real-estate-fund/) or factored receiveables funds
- __loam 3y ago
  Not sure how strong the commercial real estate argument is rn lol