Category Archives: Culture

How Much Is Real?

I was watching a report this morning on the collapse of FTX, the cyrpto exchange. Some pundits are stating that this bankruptcy, “is bigger than Enron“. Truth in lending, I have no holdings in crypto as I don’t understand it and what little I do, makes no sense to me. That said, there was a 20-something Gen-Z kid whining that he lost $2 million because of the collapse of FTX. My question when I hear people whining about their investment losses is, “how much of that is a real loss?

The whiners, usually exaggerate how much loss they’ve suffered in order to sound sympathetic. During the Enron collapse, there was a young employee (I recall that she was a secretary) of the company who had her retirement savings 100% invested in Enron stock. She said she lost “a million dollars of her retirement when Enron collapsed. I always have questioned such numbers. How could she have legally invested “a million dollars” of capital into a retirement fund. If she was working for 5 years at Enron, she would have had to have a salary of around $450,000 per year to have “a million” to invest. $200,000 goes to taxes, $50,000 goes to living expenses, and then she’d have $200,000 to invest over 5 years. If she could earn $450,000 per year as a secretary, why the belly aching when she has another 40 plus years of her working life left. I suspect her “real” losses may have been around $20,000 at most.

The same goes for the Gen-Z kid moaning about his $2 million dollar loss in FTX. FTX peaked at $84.18, right now it’s trading at $1.88. If you use the peak numbers, the kid owned around 45,000 shares. Say he bought in around January of 2021 when FTX was around $5 per share he would have needed to invest around $225,000 which is by no means a small amount of money. In “real” dollars the kid would have suffered a loss of around $140,000 ($5 down to $1.88) which is a far “cry” less than $2 million. Even if the Gen-Z kid actually lost $2 million of cash because he bought at the peak, just earn another couple of million in the next 40 years of a working career and stop whining.  Investments have risks. Deal with it.

And don’t forget, these highly paid 20-somethings can write-off their “real” losses against earning of their 6-figure incomes.  And who pays for those write offs?  Well that would be you and me the taxpayers who didn’t invest in risky ventures.

Who Do You Believe?

Old Fool Joey met with Xi the dictator (err president) of China and stated the he BELIEVES Xi, that there is no immanent threat of China invading Taiwan.

I feel so much safer now.  Whatever Joey believes, that’s good enough for me.

  • Joey believes that inflation is transitory.
  • Joey believes that the economy is in great shape.
  • Joey believed that the Afghans would hold control of their country when we surrendered.
  • Joey believes that slavery in another country is just a difference in cultural norms.
  • Joey believes abortion is a right and follows Christian values.
  • Joey believes skin color and gender are more important than competency.
  • Joey believes anyone who votes against any Democrat is a threat to democracy.
  • Joey believes parents are domestic terrorists.
  • Joey believes $5 gas is less expensive than $3 gas.
  • Joey believes TRILLIONS of dollar$ pumped into the economy doesn’t lead to inflation.
  • Joey believes the border is secure.
  • Joey believes Border Patrol Agents whip illegal immigrants.
  • Joey believes his son Hunter is the smartest man in the world.
  • Joey believes the COVID vax prevents you from getting infected.

Oh heck, Joey BELIEVES he’s actually in charge.

Royal Order

I watched the funeral service of Queen Elizabeth II this morning. I’m not a royals follower, it just happened to be on the news when I flipped on the TV. At the end of the service the “top” royals were whisked away in limousines to the Queen’s final interment.

Here’s what I found interesting in that event.

King Charles III entered the first Rolls Royce limo followed in by the Queen Consort Camilla.

Prince William entered the next second Rolls Royce limo followed in by Princess Catherine.

When it was time for Harry and Meghan to get into the third Rolls Royce, Meghan entered FIRST without looking at Harry and then Harry got in after her.

I guess we know who wears the pants in that family.