Viewing profile — ZachPruckowski

Looking at your thought experiment, the difference is whether that customer gets $500K (all of the bank's assets are sold to make him whole[1]) or $1M - all the banks assets are so…

> "Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law." Very curious to see who ends up…

> I hope the FDIC is able to get a substantial dividend quickly so that they can keep operating and that everyone works to keep disruption low The FDIC has publicly said there will…

I mean, yeah, that's ultimately a potential problem for the federal budget. But that's not what tripped up SVB - long-term Treasury prices declined because higher interest rates ma…

Interest rates are where they were in the mid/late 90s ( https://fred.stlouisfed.org/series/FEDFUNDS ). The idea that these interest rates are unsustainable/dangerous is just silly…

I mean, completely reducing this risk to 0 is probably expensive and annoying, yes. But you could halve the risk by splitting your money into just two bank accounts, and reduce it …

> "This isn't some sort of complex bid call option strategy" Exactly. And "don't put all your eggs in one uninsured basket" is the exact sort of 101-level business advice I'd expec…

They actually had like $12B split across 5 or 6 banks. But yeah, they definitely could've split it better. "No more than $1B per bank" seems like an easy rule, and even maxing at $…

Well and it's not just that they had money over the insured amount in a bank. It's that they had ALL of their money in ONE bank. If they had $500K in three different banks instead …

Not just any initial capital, clean US dollars in a brokerage account under somebody's real name. You can't use BTC or rubles or drug money or whatever.

>When Musk posted a tweet 'joking' about taking Tesla private, which was utterly trivial to investigate, the SEC only managed to deliver a slap on the wrist. Because prosecuting El…

>Of course, insider trading among well connected hedge fund managers and our unaccountable financial elite is indeed pervasive and goes by without being prosecuted all the time And…

I'm not sure this works. A lot of the folks who're short on Tesla are big names with trading records who've been short on Tesla for a while. If you roll up and your first stock tra…

In the aggregate sense, it eventually netted out. But a lot of people who sold when it looked like prices were collapsing sure got a pretty decent chunk of their bank accounts "era…

I know, right? I work with a lot of politicians and they run the gamut from "tech savvy 30-year-old" to "grandpa who still uses AOL". Any product which wants to appeal to the entir…

You're not supposed to round 0.08, you're supposed to divide 0.08/8.24. The 8.24 is the percentage point return for the pension fund and the 0.08 is the percentage point cost for t…

A serious security push might raise computing costs to the point where some low-margin computing activities become unprofitable or folks like Amazon push less into expansion/R&D to…

>"make a single-service product, get millions of investment dollars, sell it to Facebook or Google for billions at 1000x revenue premium while still not profitable and cash out" An…

>Breaking a bad law can be virtuous, but I suspect in this case it's neutral at best. It's not "breaking a bad law" that can be virtuous, it's the case. Sit-ins are/were virtuous b…

>Why do regulations have to be in line with market economics in the first place? Yeah, I think this is something a lot of folks overlook - regulations exist because society has dec…

Don't forget to factor in the costs of running, cooling, and maintaining that much hardware (also bandwidth costs). I'm not saying it's $2k/month, I'm just saying don't compare the…

No, the article suggests that teachers can't raise scores in heavily impoverished unstable areas fast enough to meet demands. That's a much narrower thing than "schools are useless…

Yeah but what fraction of home users are going to consider that prompt as opposed to just clicking on the OK button? I've noticed a lot of software will include that in its install…

The sort of bot he's describing would be designed to mask large purchases and prevent them from sucking all liquidity out of the market temporarily or spiking prices. Let's say I w…

Fairly hard actually - you've got to stakeout the house without being detected and tail the guy when he leaves. Plus you may not know how many folks were in the house in the first …