Long time no write, so here we go.
It’s Samual Bankman-Fried-day:
Details are still unravelling, but I can’t help but say a few things about this brazen criminal who comingled with celebrities in a dirty t-shirt. It’s just so distasteful you’ll need to stop and floss occasionally. There’s nowhere near room enough here, but I’ll tease it out a bit for now.
Definitions/Acronym Soup:
Financial Fiduciary: When a mechanic says it’s time for a major repair, we rely on both his skill and his honesty. Likewise, a financial fiduciary has unique knowledge of the sometimes-complex products in his wheelhouse, and therefore is under a special obligation for both competency and straight-shootery.
SBF: Sam Bankman-Fried, is the privileged, and purportedly-brilliant son of two well-known academics. After a promising start in finance, SBF went out on his own and quickly became the chief cheese of FTX, FTT, et al, the latest scam-ological anomaly to hit the airwaves.
FTX: is/was Bankman-Fried’s Crypto futures exchange. This term alone should make you shiver – but not like the girls did for Elvis. This is a facility that helps people bet on the future value of unregulated imaginary coins. What could go wrong?
Clarification: To be sure, there was real money in the mix, but not from Sam’s short pants pocket.
Note: Advocates of crypto-currency are especially attracted by its lack of regulatory oversight. They may actually have a point, but this is what a lack or oversite looks like, combined with easy money and a sniveling cheat.
FTT: The (imaginary?) crypto-currency created by SBF via FTX’s sister company, Alemeda Research. In effect, Alemeda created money out of thin air, lent it to all manner of drunken sailor, AND its sister company, then SBF climbed the fluffy mountain of success and fame from a beachfront office in the Bahamas, all while carefully crafting a geeky-boy-next-door image.
Effective Altruism: Bankman-Fried reportedly “donated” gazillions to charity, much of it not real, becoming a poster-boy for “Effective Altruism,” which in its proper light should be a great idea – to focus on your skills, then donate to charity, rather than focusing on charity and having nothing to give. So much puff and stuff in Sam’s case unfortunately.
Neverfood: Imaginary food the Lost Boys ate in Peter Pan. SBF usually had some on his t-shirt.
Buttons: The imaginary currency used in the children’s show, HR Puf’nstuf.
Disclaimer: They both live on a fun-filled island, both have an eclectic group of friends. Neither have any use for button-on shirts. But any resemblance between Sam Bankman-Fried and HR Puf’nstuff is purely coincidental. Also Peter Pan...
In the Bahamas, life is a beach, but “it’s all just a Bahamian rap” said he. (Repeat this 3x quickly to yourself).
TCSFX: True Crime Stories Futures Exchange. A facility to invest in predictions about the future internet TV streaming value of a good scam. I made that one up. Or did I?
- The main question is whether this’ll be a movie or a mini-series. I’m going with the latter. The fact that we’re not sure if it’s a $20 billion or $40 billion means this scam eats its predecessors for breakfast.
And that’s saying something.
Well Sam, the ultimate foe eventually catches up. Time. I wonder how much you’ll do.
Back here on earth, this week’s Global Insights:
- The one big thing - With a U.S. recession looming in the distance, what are the consequences for investors? The key: Quick changes in direction have come unexpectedly, and that includes upward moves.
- Regional developments: BoC hikes rates by 50 bps; Excess reserve balances within the U.S. banking system are dwindling; Expect 50 bps hikes from the BoE and ECB; China’s reopening moves boost market sentiment
Read more here: Global Insight Weekly
And now.....
Because it’s Friday and there’s a World Cup underway:
Dear Team Croatia,
We can see you.
Admittedly, knocking of Brazil this morning was a real nail-biter. Our hats are off to you.
But here's the thing. My aunt Mildred wants her picnic table cloth back, so once you're done (and they're washed), please return the uniforms to her. We're planning a family outing.
And this:
Player 1: Do you find this metal thing uncomfortable?
Player 2: Your shoes are untied.
Enjoy your weekend!
Mark