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Urgent: Sign the petition now

ycombinator.com

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Re: Urgent: Sign the petition now

#341

Post by Enginerrrd »

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.

Can someone start a counter-petition requesting they NOT get a bailout? I've been talking to deaf ears for the better part of a decade about what I called Silicon Valley Sickness and how it's had some really negative impacts in a lot of sectors outside of tech.

Re: Urgent: Sign the petition now

#343

Post by cirrus3 »

If they were dumb enough to risk that much money uninsured, what does that say about their decision making competency in general? What other decisions are these companies making with my data?

If a company got caught up in this, maybe they were never mature enough to exist in the first place, or got bad advice.

Play stupid games, win stupid prizes.

Re: Urgent: Sign the petition now

#344

Post by softwaredoug »

lapcat wrote: post #202
softwaredoug wrote: post #128

I would recommend people familiarize themselves with what happens historically when bank failures happen unchecked. It’s catastrophic. Good luck to you if any of these companies employs you or owes you money. A good book with a first person blow by blow is “The Great Depression: a diary”

Everyone is aware of the Great Depression. This ain't it.

I don’t think it is either. It’s just an important reminder the end state of letting banks fail.

Re: Urgent: Sign the petition now

#345

Post by api »

garry wrote: post #167
axlee wrote: post #127

Earlier quoted context omitted.

There was nothing arbitrary about that choice. This bank promised better deals BECAUSE they were not careful enough about the risk it entailed. That was their competitive advantage, and they made bank for it. Well, tough luck, now it's not anymore: it has nothing to do with being a large bank or a small bank, it has to do with healthy business practices.

Many startups chose SVB because they were the ones willing to open a bank account for them at all. I remember going to a branch of Bank of America to open a bank account for Posterous and not being able to.

What? Just about any bank will open a basic small business checking and savings account. It won’t be fancy or high yield but they will bank for you.

Are you really saying BofA would not take deposits for you?

Re: Urgent: Sign the petition now

#346

Post by TuringNYC »

crummy wrote: post #89
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.

Didn't the public get paid back, plus extra, after bailing out the banks?

>> Didn't the public get paid back, plus extra, after bailing out the banks?

To be totally factual, while the public did get paid back, part of the reason is that the Fed started printing money and buying bonds way above asking price to move the market. If you do this enough, prices naturally correct because everyone knows there is a buyer at a certain price and a floor price.

The downside is, well, all the printed money.

Re: Urgent: Sign the petition now

#347

Post by pfhayes »

TedDoesntTalk wrote: post #314
pixl97 wrote: post #189

Earlier quoted context omitted.

I mean the 250-500k limits have been around for a long time now, that said they are rather low due to inflation. Most larger companies reduce this risk by spreading assets over a number of banks. Just banking with a large bank does nothing if they fail.

You don’t even need to use multiple banks. Each individual amount is insured to $250k. So if you have monthly payroll due of $1M, then open four checking accounts (all at the same bank), and don’t keep more than $250k in each.

Banks will almost certainly not let you do this

Re: Urgent: Sign the petition now

#348

Post by Ekaros »

rytill wrote: post #259

Why not get a loan? Can someone explain what fundamental difficulty there is in taking out a temporary loan to make payroll until the FDIC sorts things out and you make X% of your money back?

Or have a quick funding round. VCs are involved. So they should be happy to provide more funds to great businesses that they surely make massive profits from in future.

Re: Urgent: Sign the petition now

#349

Post by pdq »

baq wrote: post #24

Pathetic to be honest. Yes it’s bad. Yes it’ll get worse if no buyer at 100 cents to the dollar is found by Monday morning. And yet, literally everyone involved signed up for it! It isn’t like there aren’t other banks? The thing had a circus for its risk management office. The big mighty all-knowing VC firms shouldn’t go around crying like babies and signing petitions but be organizing bridge loans until FDIC, the mo…

The worst part about this is if SVB does get bailed out by the government, everyone will wire their money out anyway. YC is not going to leave their money if it's back stopped again.

So the message is: "Please shore up and reopen SVB, so we can get our funds out. Then you can shut it back down."

Re: Urgent: Sign the petition now

#350

Post by [deleted] »

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.

[deleted]
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