What's up with all the trolls?
Urgent: Sign the petition now
281–290 of 864 posts
Re: Urgent: Sign the petition now
#282LOL, 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.
Agreed 100%. So many issues with the economic system come from the fact companies want capitalism when it benefits them, but something akin to socialism when there's a risk they'll fail.
So no. If your bank can't make payments? Tough, it should close down and go into administration or whatever. Maybe the government can bail out individuals, but companies relying on said banks can deal with bankruptcy or closure like it was any other sort of business risk. Company can't pay a higher minimum wage (or a livable one)? Then deal with less staff, or shut down, your business model simply doesn't work and isn't profitable.
And if your industry is dying because of technology (like say, Australian media outlets with Google and the internet), then tough. Accept it's probably dead and either downsize, come up with a new business strategy or close down.
So many seem to want a dog eat dog system when they're winning, but beg for mercy when it goes wrong.
Re: Urgent: Sign the petition now
#283LOL, 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.
These are depositors of a bank. Most startups only have one bank. Startups should live or die because they create good products and solve real problems in real markets, not because they made an arbitrary choice like which bank they started using. There's also a real risk of bank contagion if it is only safe to deposit in the largest banks.
Sorry but absolutely NO to a bailout or government intervention or help. The VCs got themselves in to this mess of a pyramid scheme and now you have to get yourself out by yourself with others.
Before the crash, YC, Founders fund and others could have raised money to stop the collapse but it seems the VCs just let the bank fail and now are begging to the US government for a bailout put on the taxpayer to foot the bill?
Absolutely NOT this time.
Re: Urgent: Sign the petition now
#284LOL, 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.
Disagree. People who invested in SVB should be wiped out, probably. People who deposited in SVB should not be wiped out. Depositors in banks aren't expected to do due diligence on the financial statements of the bank they're depositing in. Have you read the 10-K filings of your bank in detail?
Correct. The $250,000 FDIC cap is a favor to banks. They only pay fees to insure up to that amount. And it's bogus. The FDIC should require deposits to be insured, no matter the amount.
Re: Urgent: Sign the petition now
#285I wonder how many of the petition signers are vehemently against the government's student loan forgiveness plan.
Don't need to imagine, here is good old Larry Summers https://imgur.io/gallery/JWaOuoi
Re: Urgent: Sign the petition now
#286LOL, 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.
I’m torn. When I put my money in the bank, I don’t consider that an “investment” and neither did the employees.
I’m the last person to feel sorry for BigTech employees (I am one) making $300K+ a year (I don’t. I’m not complaining) who got laid off and didn’t save during the good times (I have used almost every penny of my after tax signing bonus/RSUs toward “increasing my net worth”). But most of the people working at startups aren’t making nearly that much (?). Why should they suffer harm?
Could the CFOs at these companies known they were making risky bets (serious question)
Re: Urgent: Sign the petition now
#287I'd support the government doing what it can to help these companies sell equity to make up for cash shortfall, but I don't see why it is a taxpayer problem to bail them out with no guarantees going the other way.
Re: Urgent: Sign the petition now
#288Earlier quoted context omitted.
These are depositors of a bank. Most startups only have one bank. Startups should live or die because they create good products and solve real problems in real markets, not because they made an arbitrary choice like which bank they started using. There's also a real risk of bank contagion if it is only safe to deposit in the largest banks.
Why do startups only have 1 bank? I own a bootstrapped startup with literally just 1 employee and am easily able to get an account in Chase or Citi. Why do startups with much more revenue not able to get the same account in major banks?
His own petition says:
> In the Y Combinator community, one-third of startups with exposure to SVB used SVB as their sole bank account.
So apparently two-thirds of startups in YC with SVB have at least one other bank. That might not be representative of startups as a whole, but is at least a good data point.
Re: Urgent: Sign the petition now
#289No.
Re: Urgent: Sign the petition now
#290People are misdirecting their (rightful) ire over 2008 bank bailouts at depositors, which apparently is because they don't like some of those depositors for unrelated reasons. Nobody is defending the bank, which already has been shut down and its shareholders rightfully wiped out. The idea that backstopping depositors is moral hazard is preposterous and honestly embarrassing on a platform where people should know better. This is a bank that was in compliance with state and federal regulations, and according to California's regulatory agency, was "in sound financial condition prior to March 9, 2023."[1]
Bank deposit accounts are supposed to be boring financial infrastructure, not a source of risk. If you destroy faith in the US banking system among depositors, this particular bank failure will be the least of our problems.
[1] https://dfpi.ca.gov/wp-content/uploads/sites/337/2023/03/DFP...