I don’t think what we know about what happened at FTX means that Sam Bankman-Fried did not have this outcome as a significant probability in his models. In his stated decision theory taking huge risks and betting everything is very much fine.
Just because an event happens that causes a firm to fail doesn’t mean that the firm did a mistake in its risk assessment. Startups are started with the expectation that the most likely outcome isn’t a success.
People and organizations seem to me to be two different things. Do you think there are many organizations that went bankrupt as a ripple effect of depending on FTX?
I don’t think what we know about what happened at FTX means that Sam Bankman-Fried did not have this outcome as a significant probability in his models. In his stated decision theory taking huge risks and betting everything is very much fine.
Just because an event happens that causes a firm to fail doesn’t mean that the firm did a mistake in its risk assessment. Startups are started with the expectation that the most likely outcome isn’t a success.
I mostly mean people who gave FTX money to “invest”, not the Madoffs of the world.
People and organizations seem to me to be two different things. Do you think there are many organizations that went bankrupt as a ripple effect of depending on FTX?
If so do you have links?