Like Charles Ponzi and Bernie Madoff, Sam Bankman-Fried may have thought life crept up on him. And as with every other grift, whether conning a SCOTUS scion to help loan Russian-protected funds with a German bank, or now needing to borrow $8B with a deadline. Eventually the bottom line or front end comes back to bite you. Bankman-Fried fought the float and the law is winning the game of ethics.
All the trust guaranteed by an encrypted energy-sucking technology will get destroyed because someone will ripoff the funds at another point in the capital timeline, also… Genisys is Skynet. Bait and re-Switching.
“Playing the float” is also surplus value. Float plays an important role in cash management. The cash balance as per the company's records may not always be the same as the bank balance available. The difference between both the balances is called as the Net float.
The most common usage of the term “float” is money that exists on two different ledgers simultaneously. It’s a phantom calculation, a temporary state of doubled money created by situations like a delay in payment processing.
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Alameda Research was Sam Bankman-Fried’s first company. He built FTX partly to help Alameda’s trading business. Then things got out of control.
In late 2017, Sam Bankman-Fried, then 25 years old, co-founded Alameda Research, a small trading firm that marked the beginning of his cryptocurrency empire.
Now the relationship between Alameda and his cryptocurrency exchange, FTX — and how the two propped each other up — is coming under scrutiny as prosecutors and regulators investigate the collapse of one of the best-known trading platforms in the crypto universe.
Alameda’s need for funds to run its trading business was a big reason Mr. Bankman-Fried created FTX in 2019. But the way the two entities were set up meant that trouble in one unit shook up the other as crypto prices began to drop in the spring. In the end, it brought down both Alameda and FTX, leading to billions of dollars in losses for customers and traders.
And although the collapse echoed past calamities on Wall Street, the lack of regulatory oversight — coupled with an ambitious start-up founder flush with venture capital money and few internal controls — meant that there were few parallels.
John Jay Ray, III, a prominent restructuring lawyer handling the cleanup of FTX, called the situation “unprecedented” in a U.S. bankruptcy court filing on Thursday. He blasted the company for the “concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals.”
Mr. Bankman-Fried co-founded Alameda in Berkeley, Calif. His scrappy team of traders in their 20s worked around the clock, showering in the locker room of the gym of the four-story building where Alameda had its headquarters. He soon moved the firm to Hong Kong, which had been wooing crypto traders and imposed little oversight on the nascent industry.
The main way that Alameda made money was straightforward: It bought Bitcoin and other cryptocurrencies in one part of the world and sold them in another, pocketing the difference.
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Even Austrian Libertarians thought it was hinky (in ethical retrospect).
What Is the Float?
In financial terms, the float is money within the banking system that is briefly counted twice due to time gaps in registering a deposit or withdrawal. These time gaps are usually due to the delay in processing paper checks. A bank credits a customer’s account as soon as a check is deposited. However, it takes some time to receive a check from the payer’s bank and record it. Until the check clears the account it is drawn on, the amount it is written for "exists" in two different places, appearing in the accounts of both the recipient’s and payer’s banks.
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Total surplus-value in an economy (Marx refers to the mass or volume of surplus-value) is basically equal to the sum of net distributed and undistributed profit, net interest, net rents, net tax on production and various net receipts associated with royalties, licensing, leasing, certain honorariums etc. (see also value product). Of course, the way generic profit income is grossed and netted in social accounting may differ somewhat from the way an individual business does that (see also Operating surplus).
Marx's own discussion focuses mainly on profit, interest and rent, largely ignoring taxation and royalty-type fees which were proportionally very small components of the national income when he lived. Over the last 150 years, however, the role of the state in the economy has increased in almost every country in the world. Around 1850, the average share of government spending in GDP (See also Government spending) in the advanced capitalist economies was around 5%; in 1870, a bit above 8%; on the eve of World War I, just under 10%; just before the outbreak of World War II, around 20%; by 1950, nearly 30%; and today the average is around 35–40%. (see for example Alan Turner Peacock, "The growth of public expenditure", in Encyclopedia of Public Choice, Springer 2003, pp. 594–597).
Quantitative Easing:
Game Theory Optimal. GTO (Game Theory Optimal) means that if you play this strategy, you will be nearly impossible to exploit. Non-exploitable means that opponents cannot alter their play based on learning from you play. If they know exactly how you are playing, they cannot adjust their play to improve their expected results.
How may a person take advantage of playing the float? The answer is simple and it does not require complicated techniques to reap the benefits. The only requirement needed is that you possess a strong will and to be quite organized with your budget.
If this you have a variety of credit cards, you can apply to enter the game of playing the float, which consists of the following:
1. Deposit in the bank a quantity of money that is equal to the amount planed on being spent with the credit card.
2. Purchase with the credit card the majority of the things that are needed.
3. Paying the due amount in the card until the date the date of its offered interest rate is expired.
Which is the benefit this person obtained? When you paid the total amount, you made use of free financing (at 0% interest) and no interest was charged. At the same time you maintained money deposited a bank account earning interest. The bottom line is a gain obtained from the interest of the money deposited.
An important point that you must keep in mind is that this game will have favorable results only if you don’t get into debt with the credit cards since once the free financing is used, you will lose the possibility of taking advantage of this game and lose the benefits that go along with it. Remember that you must confront the interest payments, which are usually notoriously high.
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