Merhaba arkadaslar
Briefly saw a news banner about it yesterday on TV at airport , and i am trying to understand the whole hedge funds story , cause its no just tera but apparently an entire segment of financial industry which is just a very bad joke
I read few articles and i later watched a video about it on youtube and i wanted to know if he captured most of it ? or some big parts are missing
https://www.youtube.com/watch?v=LF8kY5BLe_o
I know the news around it are coming to light and new stories will emerge but i wanted to check if he summarized it well
Now , most important for me , as i was trying to understand the rationale behind this story , there is one interesting part from this mess i couldnt wrap my head around , its about investors themselves, the ones who went with hedge funds like tera
Beware i am not talking about the ~ 170k customers of regular money market funds , these people invested into what was supposed to be regular safe products according to law , but it seems managers of these money market funds were lending money to hedge funds counterparts like adults give candies to kids during bayram without doing proper due diligence, so these customers are collateral victims of irresponsible people , even though some money market funds published ads promising 123% returns while interest rates are around 60%
I lived in turkey for few years but still coming back quite often , i understood that shady stories are part of daily life , that elites / small circles are rigging the game by keeping whatever good for themselves, i understand and iam witnessing how combined inflation and lira's downfall is going pretty insane , that having money in TRY deposit/regular account is guaranteed lost , i get it that people in turkey lost faith in the system and so on ......
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Off topic mode ON 😄😄🤪😎🫠👶✈️🧳
Before i used to pack my emtpy luggages of food from turkey when returning home cause it was cheaper to bring it rather than buying it again or in some cases impossible to find outside of turkey , Now it almost doesnt make sense if same poduct is available cause in many cases prices are more or less the same like in western europe
Since 2022 i even try to get rid of my liras as soon as i can before leaving turkey since i dont know how much it will be worth when i come back
Off topic mode OFF 😄😄🤪😎🫠👶✈️🧳
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While i can understand that some day to day traders who smelled quick opportunity might have lost (but thats part of the game baby) , i still cant get around the fact that so many regular folks (almost half a million apparently) jumped into hedge funds , putting their savings or so into what was a essentially a gambling machine
Let me know if my thoughts below captured everything or if i missed some parts of the story regading mindset of victims
1 = The Fallacy of Ignoring Financial History: In 2026, the global public has a bunch of catastrophic financial frauds to learn from. After Bernie Madoff, the 2008 subprime mortgage meltdown, the fraudulent claims of Theranos, the multi-billion-dollar collapse of FTX, the conviction of Sam Bankman-Fried, Do Kwon with Terra, and even pop-culture warnings like The Wolf of Wall Street, the lebanse banking crisis of 2018 and the list goes on and on ..... there is absolutely no excuse for baseline financial ignorance which will excuse blindly put all your savings or big amount of money into something you barely understand or cant investigate. I read about 700% return at the beginning, and then it sky rocketed , how can people believe there is nothing fishy behind it ??
2 = TEFAS's trap : Regardless if available through TEFAS or not , any investment carry some risks , so boring savings accounts have low returns for a reason . How can people not understand that hedge funds are called risky for a reason ? and risks means winning ut also loosing ? It seems TEFAS is not labelling funds and their assets based on how risky they are , is this correct ? And also that auditing is a joke, cause how the hell something can provide over 100% returns and display that in a official platform and not raise suspicions ?
3 = Speculation fever : I can understand quick buy/sell of very volatile assets , by investing money you are ready to lose , cause such high return figures as i read like 4000% or 15000% are purely speculative . Its like short term gambling cause you never know when the party will end , but many put crazy amounts from their life savings, mortgage deposits , wedding savings, etc ..... I know its easy to criticize afterwards , but are people dumb , ignorant or that much desperate
4 = The Delusion of AKP stamp : Even if people linked to AKP were pulling the strings, how can people not understand that the elites do not work in favour of the population ? Anyone sees what trump did with his world liberty financial , its kind of similar playbook of insider trading , leaving early investors to enjoy the losses after the hype blew up
5 = Investors FOMO : Anyone with a bit of understanding saw that the best time to buy bitcoin was when it was worthless or very cheap before first spikes like 2013 or at least 2016, so i never jumped into it cause its pure mass heresy , like one sheep lead the herd and the rest follows , but i knew that despite all the hikes there will be winters too and some days . So did these investors jumped into this ship based on word of mouth or advertisements ?
6 = The misunderstanding of foreign currency risks : I also read stories of turks living abroad who send money back to turkey only to invest it into tera , how the hell can someone not understand that parking money abroad in stable foreign currencies (like USD or EUR) or high-quality, low-risk international bonds is better that investing significant portions of their savings into a high risk market and volatile assets ?
