Recent events remind me of the bankruptcies of Icelandic banks during the Lehman financial crisis of 2008.
And the 2012-2013 Cypriot banking crisis where the bank depositors (savers) have to "bail-in" their failing banks!?
For crying out loud!
These savers must be kicking themselves since they are not even investors or speculators... (But they got to admit, they are yield hogs!)
I mean if the maximum upside is at best 10% or 20%, and the downside can be -100%, like that they might as well join the speculators and jump onto those risk assets that can 100X and shoot to the moon!!!
They got the risk/reward ratios all backwards!?
Contagion?
Smart is telling others to hold on for dear life, buy the freaking dip, or diamond hands all the way...
While you secretly run to your bank and withdraw as much money out as possible.
Vehicles different; human behaviour, same same
Some say Heng as they are not in the game. Investing is hard. Speculating even harder
ReplyDeleteCW,
DeleteThose good in Math have an advantage.
You can count and verify whether the "promised" returns were mathematically sustainable.
And more importantly, quantify the risk/reward proposition.
I'm bad in math; I'm the words guy.
Since I know my weakness, I use Stop-Orders ;)
Smol,
ReplyDeleteIt's hard when one confuses saving with investing, let alone speculating. ;)
And when one becomes convinced that something is a bona fide "savings", even hard headed seasoned investors let their guard down.
After all, who ever applies hard stops, trailing stops, profit stops, price alerts on POSB or DBS savings accounts?
(Ok ok, now we have the transaction alerts on anything that's 1 cent or more due to the scams & hacks)
Buffett & Munger must be having schadenfreude now. Especially Munger. He was already happy during Berkshire's shareholder gathering when terra/luna were still a thing lol.
Spur,
DeleteI guess all eyes are on whose next?
If there's a run on the biggest one, then all bets are off!
I mean who is to say that big one isn't like our S-Chips?
Eh? Where are all the cash and reserves "promised" on the balance statements?
I mean if Singapore publicly listed and so called "audited" financial statements can turn out to be "faith-based", what more to say about never independently audited statements from "private" companies?
Save More is Save More; Earn More is Earn More.
If one can't tell them apart, at the very least have that awareness!
Everyone loves Buffet/Munger... Until he/they says something against their own beliefs.
ReplyDeleteSo many people love to talk about "value" investing and yet...
ERSG,
DeleteGot to love "selective perception" at work,
Quote Warren Buffett to justify buying the dip - buy when there's blood in the streets!
But completely ignore Warren's warning that asset will come to a bad ending...
OK, nobody quotes Charlie Munger, so its fair to ignore Charlie Munger's opinion that asset is both stupid and evil...
Big daddy also very crystal - don't you dare promote and sell to retail.
But if retail ignore warnings and own self buy; own self get hurt...
That person who made police report is an embarrassment to their community, That's the whole purpose of being unregulated and outside the mainstream financial system!!!
You want big daddy to regulate and police?
Huh?