"there are no atheists in a foxhole, no libertarians in a bank run"
Underrated comment ^^^
Urgent: Sign the petition now
571–580 of 864 posts
Re: Urgent: Sign the petition now
#572Don't ycombinator and the various VCs always complain about government regulation? Don't they always complain about taxes?
The other day I saw the old quote "there's no atheists in a foxhole" extended with "and no libertarians in a bank run".
If there's a tax payer bail out (and I don't believe there needs to be - this seems more a liquidity problem than total funding) then all of that money is just tax payers giving money to VCs.
More over, this bank run is almost entirely a product of VCs telling all of the startups they funded to pull all of their money out of the same bank they told all of them to use - so they supported removing the regulations that make runs harder, and then they caused the run, and now they're asking for tax payers to take on all the losses.
Re: Urgent: Sign the petition now
#573LOL, 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.
What socialized loss are you talking about? This seems like TARP, which was a huge gain for taxpayers.
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Re: Urgent: Sign the petition now
#574Earlier quoted context omitted.
Though perhaps the feds should expedite, for businesses with only one bank account, getting them 15%-20% of their funds quickly. This is assuming that it appears very clear everyone is going to get more than 20 cents on the dollar. Many startups can survive taking the 30-40% haircut on their bank balances. Very few can survive their cash being locked up for many months (especially when there are many startups in the…
They have been pretty clear that they want to do this. And the balance sheet as liquidity skewed as it is is healthy, I would be extremely surprised if they get less than 95% back. These "movements" are folks asking for normal processes to be suspended for the sake of that 5% or whatever and it's going to muddy the waters vs asking for the obvious "give us some liquidity now since you can immediately secure a huge ch…
> And the balance sheet as liquidity skewed as it is is healthy, I would be extremely surprised if they get less than 95% back.
The big question is how much of the "run" has been paid, or will have to be paid at 100% because of transactions initiated before receivership. I also think 95% is a little bit optimistic from the get-go.
> They have been pretty clear that they want to do this.
An unspecified dividend at an unspecified time sometime next week is better than nothing, but it's still pretty toxic.
Re: Urgent: Sign the petition now
#575Uh, why does this need to be flagged? Agree or disagree, it’s a legit thing to discuss.
Re: Urgent: Sign the petition now
#576Earlier 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?
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Re: Urgent: Sign the petition now
#577I get that it's your site and you can delist whatever posts you want to, but one of the hot-button issues in politics right now is censorship and manipulation of social media so it's a really bad look for you to be doing this. Nobody is going to want to give you free
money if you're going to use whatever power is at your disposal to censor discussion around whether or not you deserve free money.
Again, it's certainly within your rights to flag this post but you're literally asking for an untold amount of money from the public while you're using what little power you have to stop the public from criticizing you.
Just try to not be a fucking hypocritical asshole for once.
Re: Urgent: Sign the petition now
#578Why 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.
I flagged the submission, as it was titled “Urgent: Sign This Petition Now”. And fuck that, if I’m being blunt.
It appears the title was changed from the original submission: https://news.ycombinator.com/item?id=35114101
I agree the current title is not appropriate.
Re: Urgent: Sign the petition now
#579Earlier quoted context omitted.
Or not encourage them to have multiple bank accounts so that deposits are fully FDIC insured? In effect, it encourages concentrating deposits in a single bank. Benefits the bank, does not benefit the depositor.
What's weird is that you can insure an account for more than that, it's just not free. So if you had "substantially more" than that, you should be financially savvy enough to insure your accounts and pay for the insurance on them as a cost of doing business. That's why we insure anything - in case something happens.
I found no information on how to do this with a cursory Google search. What comes up are other stratgies, like multiple bank accounts, each at different banks. Or instruments like certificates of deposit, which aren't suitable for payroll.
So if banks offer more insurance for a fee, I can't easily tell how to do this. My business banking account has nothing about such a feature, either online search or looking at the fees schedule.
I'd consider this obscure, even esoteric information. But I'd expect a CFO should know this. And I'd expect a venture capital fund would have an info sheet on avoiding consolidating deposits in a bank, given the 2008 experience. And yet... nothing.