Dec 13, 2022
Learning from past mistakes is vital for any business venture or industry because it prevents the same mistakes being repeated. This topic comes to the forefront with the announcement of the controversial bankruptcy of FTX, one of the world's largest cryptocurrency companies, and the catastrophic events and revelations that followed. This week's episode of Grow Money Business discusses what's going on with FTX and why we need to appreciate history.
[04.06] FTX – Grant starts the conversation with a quick overview of what is going on with FTX.
[06.06] The Bankruptcy – Grant dives into how FTX has come to bankruptcy.
[12.20] The Difference – Grant explains the difference between a brokerage firm and a bank.
[13.22] The Great Depression – Grant discusses the worst economic downturn in the history of the industrialized world, lasting from 1929 to 1939.
[13.30] Savings and Loans Crisis - After the Great Depression, the S&L crisis was regarded as one of the worst failures of the banking sector in the United States.
[17.00] The Mortgage Crisis - The US subprime mortgage crisis was a global financial crisis that erupted between 2007 and 2010 and was a factor in the global financial crisis of 2007–2008.
[23.04] Mistakes of the Past – Grant dives into what happens when we don't learn from the mistakes we made in the past. He further discusses the similarities between FTX's bankruptcy and Lehman Brothers' bankruptcy in 2008.
[31.30] Negligence – Grant discusses FTX’s negligence towards managing bankruptcy risk.
[36.12] Being appreciative – Grant dives into the importance of appreciating others who came before you and studying their mistakes so you don't have to repeat them.
Resources
A Crisis PR Veteran on Sam Bankman-Fried’s Weird Media Strategy –
Sam Bankman-Fried, CZ Battle It Out on Twitter Over Binance's Aborted FTX Buyout –
Crypto currency crashes recall 'wildcat' banking –
https://techxplore.com/news/2022-12-crypto-currency-recall-wildcat-banking.html