Urgent: Sign the petition now • Hacker News Board

Re: Urgent: Sign the petition now

#91

Post by echion » Sat, Mar 11, 2023, 11:58 PM UTC

jarym wrote: post #32

nocoiner wrote: post #8

LOL, nope. Not interested in taking another spin on the “privatize gain, socialize loss” merry-go-round. The banks had to be saved in 2008 because they were, like, the financial system. I don’t see why private companies and funds that are much less integral to the functioning of the economy as a whole should be saved by the public fisc. Sorry about your disruption.

Are you saying if I deposit more than $250k (which is NOT a lot for a business) into a reputable and regulated US bank at negligible rates of interest I should just accept the impact of the bank shutting down due to events unrelated to my actions and choices? And that my deposit should vanish into thin air?

> Are you saying if I deposit [...] I should just accept the impact [...] due to events unrelated to my actions and choices?

You chose that bank and you chose to deposit more than $250,000. Are you saying the limit should be higher?

Re: Urgent: Sign the petition now

#92

Post by blagie » Sat, Mar 11, 2023, 11:58 PM UTC

I'm 100% in support of a bailout...

...with the federal government taking equity in return, at the last valuation, diluting existing owners.

That would let the businesses keep running, without the "privatize gain / socialize loss" merry-go-around.

Re: Urgent: Sign the petition now

#93

Post by nightmarish » Sat, Mar 11, 2023, 11:58 PM UTC

dctoedt wrote: post #49

jarym wrote: post #32

Earlier quoted context omitted.

Are you saying if I deposit more than $250k (which is NOT a lot for a business) into a reputable and regulated US bank at negligible rates of interest I should just accept the impact of the bank shutting down due to events unrelated to my actions and choices? And that my deposit should vanish into thin air?

Yes, actually — choices have consequences, or so we keep being told by "the market will provide everything!" capitalists.

[flagged]

Re: Urgent: Sign the petition now

#94

Post by geodel » Sat, Mar 11, 2023, 11:58 PM UTC

UmYeahNo wrote: post #15

When we little guys put our eggs in one basket, or put excessive reliance in business we have no control of we get accused, sometimes implicitly, sometimes explicitly, of being incompetent. That we should've known better. Hmmm.... The cynic in me says this letter is less about bailing out the small companies trying to make payroll and more about the VC's not wanting to lose massive investments.

Even if there are small companies I don't think they are in some honest business of producing useful physical goods and charging fair money for that. Most likely they are half-assed scammy SAAS crap.

Absolutely not sure why these world beaters hacking everything under Sun need to be bailed out by some stodgy old institution anyway.

Re: Urgent: Sign the petition now

#95

Post by roenxi » Sat, Mar 11, 2023, 11:58 PM UTC

nocoiner wrote: post #8

LOL, nope. Not interested in taking another spin on the “privatize gain, socialize loss” merry-go-round. The banks had to be saved in 2008 because they were, like, the financial system. I don’t see why private companies and funds that are much less integral to the functioning of the economy as a whole should be saved by the public fisc. Sorry about your disruption.

> The banks had to be saved in 2008 because they were, like, the financial system.

There was a false choice there because there are multiple options that were strategically ignored by the people who own the banking system. The financial system can be replaced. The crypto people haven't been getting bailouts AFAIK and it doesn't seem to be hurting the ecosystem; we're running side by side experiments despite the best efforts of the powers that be and it is showing that in low-trust environments the system is actually pretty robust. The response should have been to get rid of the systemic inflation that incentivises people to give their money to untrustworthy institutions.

> Not interested in taking another spin on the “privatize gain, socialize loss” merry-go-round.

I personally feel this way. But as a matter of fairness, if banks get bailouts why shouldn't YC get bailouts? YC is a more deserving cause than the banks. This was always the problem with bailouts; it is grossly unfair that incompetent banks get a handout but potentially competent companies do not.

Re: Urgent: Sign the petition now

#96

Post by lisasays » Sat, Mar 11, 2023, 11:58 PM UTC

We have a simple ask: Regulators need to step in and implement a backstop for depositors. This is not a bank bailout.

What kind of double-speak is this?

How is "implement a backstop for depositors" anything other a "bank bailout?"

Re: Urgent: Sign the petition now

#97

Post by axlee » Sat, Mar 11, 2023, 11:58 PM UTC

nocoiner wrote: post #8

LOL, nope. Not interested in taking another spin on the “privatize gain, socialize loss” merry-go-round. The banks had to be saved in 2008 because they were, like, the financial system. I don’t see why private companies and funds that are much less integral to the functioning of the economy as a whole should be saved by the public fisc. Sorry about your disruption.

110% agree. At some point, risk HAS to be treated as what it is, risk, rather than just "another way to do things". We have so many banks treating risk as what it is, and pricing for it, well these people decided to go to another bank to get funding, well deal with it. It's not like the average citizen has this luxury.

Re: Urgent: Sign the petition now

#98

Post by leipert » Sat, Mar 11, 2023, 11:58 PM UTC

jarym wrote: post #32

nocoiner wrote: post #8

LOL, nope. Not interested in taking another spin on the “privatize gain, socialize loss” merry-go-round. The banks had to be saved in 2008 because they were, like, the financial system. I don’t see why private companies and funds that are much less integral to the functioning of the economy as a whole should be saved by the public fisc. Sorry about your disruption.

Are you saying if I deposit more than $250k (which is NOT a lot for a business) into a reputable and regulated US bank at negligible rates of interest I should just accept the impact of the bank shutting down due to events unrelated to my actions and choices? And that my deposit should vanish into thin air?

I know that 250k cash is not a lot for a company with a few folks on payroll. But why wouldn’t you distribute cash across multiple banks as a business?

It hasn’t to be this situation, but if your accounts are flagged for fraud or someone hacks an account, aren’t you safer by distributing cash in multiple banks?

Re: Urgent: Sign the petition now

#99

Post by secondcoming » Sat, Mar 11, 2023, 11:58 PM UTC

jarym wrote: post #32

nocoiner wrote: post #8

LOL, nope. Not interested in taking another spin on the “privatize gain, socialize loss” merry-go-round. The banks had to be saved in 2008 because they were, like, the financial system. I don’t see why private companies and funds that are much less integral to the functioning of the economy as a whole should be saved by the public fisc. Sorry about your disruption.

Are you saying if I deposit more than $250k (which is NOT a lot for a business) into a reputable and regulated US bank at negligible rates of interest I should just accept the impact of the bank shutting down due to events unrelated to my actions and choices? And that my deposit should vanish into thin air?

In the UK, consumer deposits are protected only up to £85k. Everyone has several bank accounts. If the person on the street knows this, it’s not too much to ask that someone running a business does too.

Re: Urgent: Sign the petition now

#100

Post by hijinks » Sat, Mar 11, 2023, 11:58 PM UTC

mska wrote: post #10

Is SVB the default bank for YC companies?

SVB is pushed on most companies raising money because the VCs can easily transfer money from their account to the company. So companies looking to raise are pushed to open a SVB account. If they keep the money there is up to them.