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 “

*” of capital into a retirement fund. If she was working for 5 years at Enron, she would have had to have*

**a million dollars****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.