Hacker Read

johntiger1 · 2023-06-14 11:26:46

They bet big and they were wrong. It happens

ISL | karma 20249 | avg karma 5.04 · | 2019-10-22 02:43:39+00:00

The investors who made the wrong bet lost a spectacular amount of capital.

mkj | karma 2334 | avg karma 2.84 · | 2022-11-15 06:00:07

If they lost it through bad bets, who was on the winning side of those bets?

christophilus | karma 10910 | avg karma 3.87 · | 2021-09-14 06:04:35

Did they? I thought they made a heavy bet that hasn’t paid off (and maybe never will).

FireBeyond | karma 18718 | avg karma 2.51 · | 2015-03-30 20:57:48+00:00

Right, so they got a much better deal than they usually would, didn't factor in a contingency, took a bet... and lost.

kangaroozach | karma 172 | avg karma 1.15 · | 2020-07-01 02:42:30+00:00

It was a brilliant $100m bet that backfired for no good reason.

cirrus3 | karma 446 | avg karma 1.52 · | 2023-03-11 21:59:51

You _are_ misunderstanding. They banked at SVB betting on higher returns than other safer options and lost that bet. They were only ever told they would get 250k of that bet back. Now they are whining about it.

cercatrova | karma 7810 | avg karma 3.1 · | 2022-07-23 14:41:29

They shouldn't have gambled more than they could afford to lose

girvo | karma 11277 | avg karma 2.24 · | 2014-02-02 15:58:25+00:00

Well, that's their loss for taking a gamble on it. Not everything is a sure bet, and even those that look like it might turn out not to be :)

fallingfrog | karma 2541 | avg karma 1.18 · | 2021-05-12 17:03:38

In the words of Steve Eisman, “They mistook leverage for genius.”

Any big, overleveraged bet is going to go bad eventually, no matter how well researched.

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notyourday | karma 2237 | avg karma 0.81 · | 2018-01-09 19:45:29

Do you know what is a bet gone wrong? It is investment.

malka | karma 1923 | avg karma 2.14 · | 2015-01-17 18:08:05

People who bet against it were careless.

The money was under evaluated by the BNS for years. This was bound to happen.

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codyswann | karma 145 | avg karma 1.23 · | 2022-05-12 12:24:07

They were on the wrong side of a massive bet and lost.

Let's take the reverse and say they were on the right side of the bet and made millions and left everyone else behind to wallow relatively "poor".

Would they feel sorry for those who didn't take the bet?

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sebzim4500 | karma 5679 | avg karma 2.5 · | 2022-11-15 05:59:41

They accepted the risk of losing $100m because they thought there was a significant chance of getting a much bigger return. Obviously in this case the bet didn't pay off, but putting 0.05% of the AUM in a high risk investment is hardly a scandal.

rchaud | karma 15048 | avg karma 2.21 · | 2022-09-26 12:53:28

An ironic comment in a story about long-term bets going bad.

sheepleherd | karma 203 | avg karma 2.67 · | 2016-06-10 20:44:02+00:00

they took a gamble and lost, that's business != good riddance

msh | karma 4884 | avg karma 2.66 · | 2011-04-10 19:57:39+00:00

They gambled on winning a lot of money on it.

immibis | karma 2313 | avg karma 0.88 · | 2024-01-30 12:56:16

So bet the correct way and make the financial payoff those people won't. What's the problem?

maerF0x0 | karma 9213 | avg karma 2.47 · | 2020-10-15 23:05:05+00:00

The real issue is that one made a bet on a future that didnt come true. The opposite could easily have happened too. Oil prices could have hit $1k a barrel and people in the suburbs would be crying about the $500 fill up.

im3w1l | karma 8737 | avg karma 1.51 · | 2019-11-07 23:39:18+00:00

It may have been a calculated "go big or go home" gamble.