His 80000 interview suggests that he thought the chance of FTX blowing up is something between 1% and 10%. There he gives 50% odds for making more than 50 billion dollars that can be donated to EA causes.
If someone is saying that his action was negative in expectation, do they mean, that Sam Bankman-Fried lied about his expectations? Do they mean that a 10% chance of this happening should have been enough to tilt the expectation to be negative under the ethical assumptions of longtermism that puts most of the utility that’s produced in the far future? Are you saying something else?
I wish I had any sort of trustworthy stats about the success rate of things in the reference class of steal from one pool of money in order to cover up losses in another pool of money, in the hope of making (and winning) big bets in the second pool of money to eventually make the first pool of money whole. I would expect the success rate to be very low (I would be extremely surprised if it were as high as 10%, somewhat surprised if it were as high as 1%), but it’s also the sort of thing where if you do it successfully, probably nobody finds out.
Do Ponzi schemes ever become solvent again? What about insolvent businesses that are hiding their insolvency?
I wish I had any sort of trustworthy stats about the success rate of things in the reference class of steal from one pool of money in order to cover up losses in another pool of money, in the hope of making (and winning) big bets in the second pool of money to eventually make the first pool of money whole. I would expect the success rate to be very low (I would be extremely surprised if it were as high as 10%, somewhat surprised if it were as high as 1%), but it’s also the sort of thing where if you do it successfully, probably nobody finds out.
Do Ponzi schemes ever become solvent again? What about insolvent businesses that are hiding their insolvency?
Zombie banks would be one type of organization in that reference class.