They made what turned out to be a bad investment and lost money. Sucks to be them, but why do I as a taxpayer have to bail them out?
Yup. People have pure greed and they ALWAYS fail to recall two simple concepts.
1. Supply & Demand - Increase supply and prices fall unless demand can keep growing as fast or faster than the supply(”ain’t gonna happen”).
2, Reversion to the Mean - When prices of a stock or home gets too high and out of wack with historical growth rates the price will revert to a historical average or growth rate. You can usually draw a growth line or average. the price spikes above that average - it will eventually revert to that avg.
You can probably add a third concept and that is the madness of crowds. Like the Dutch tulip bulb craze in the 1600s or tech stocks in 1998-1999 - when a crowd is doing something enmasse - you better do the opposite.
Another concept is fibonacci retracement which is like reversion to the mean.