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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?"
A bailout protects the equity and debt holders of a bank. This has nothing to do with that--it's about making sure the depositors of a bank get the cash they were holding there.
Why on earth would this be flagged? The SVB fiasco has been all over the front page for days, with an unprecedented number of stories allowed simultaneously. This particular link is especially relevant, since it's from YC itself. The strangest part is there's no 'vouch' button, which is typically/always available on flagged submissions.
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Pretty much anyone on the internet can make an account here. Surely you don’t expect everyone to agree with what everyone else has said just because it’s on the same site!
In the same way, surely you don't expect taxpayers to agree with what SVB's account holders want, just because they are on this site!
No bailout. Where's the sense of responsibility here? YC told their funded companies to use Silicon Valley Bank. It's YC's responsibility to find a market for SVB's assets. It's YC's responsibility to create a secondary market for SVB's receivership certificates.
Man, talk about cognitive dissonance.
Depositors should get back what is available from sale of bank assets. No more
I love how they’re using language like “small business” because they know how little sympathy AI powered dog washing apps will get among the rest of the country. Sorry, a small business is a machine shop or hair studio. They don’t bank with SVB. These are startups that get millions in funding for often very dubious purposes. There are a few gems among them - but let them stand on their own. Or course, the real culpri…
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Just to clarify, these depositors specifically exceeded the FDIC deposit insurance limit (250K), right? That isn't a new or unknown rule; either through ignorance or calculated risk, those depositors that exceeded the limit took a chance. I don't disagree that something should be done in the future to prevent this, but when you gamble, sometime you lose.
Chose to exceed that and also not diversify at the same time. In my mind they have only themselves to blame. They could have gotten one or two more accounts if they are legitimate businesses.
Flagged!? Come on this is extremely topical, I cannot think of a more on-topic thing for HN. It brings together: - Silicon Valley - Startups - Y Combinator - Current Events Any one of those is an appropriate submission for Hacker News but altogether, it’s just … there is nothing more appropriate for HN. This belongs at the top of the front page where I encountered it.
Hey man, they own the place so it is their rules. Do you think the speech is free here? Newspeak only.
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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.
Why are SaaSs scammy?
- Repackaging an existing codebase or business model
- ... as a black box
- ... attempting to rent it out
- ... with worse data privacy
- ... exploiting systemic economic excesses
- ... ... inflicting societal harm
- ... ... often with minimal upside to the consumer short-term
- ... ... or long-term
- ... colluding with large existing players
- ... ... to create a treadmill of declining product quality
- ... ... to facilitate government surveillance and information operations
- ... ... to "play defense" against competitors
It's kind of like how OOP was intended to stratify and contain developers, except instead of abstracting commodity PCs there's a whole different calculus which basically implies that the ultimate consumer of computing equipment is like, 2 or 3 big companies, because financing. You know how the old democratic saying goes, "none of us is as strong as the 2-3 permanent CEOs of reality."
Unpopular opinion: the government should try to make depositors of banks whole when their banks fail.