I like it, let capitalism work as intended by culling out the weak. They should have done the same with GM and Chrysler instead of bailing them out, we'd have a faster transition to electric today.
Yellen says government will help SVB depositors but rules out bailout
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Re: Yellen says government will help SVB depositors but rules out bailout
#12[flagged]
I am not sure why you are so bitter but it’s important do understand that all you do is create more hate with comments like this. The only thing anyone is asking for is to protect the deposits of the people who bank(ed) with SVB. That is it.
Will that not cost anyone anything? If so then sure, let's do it!
If it costs more than a dime, though, let's not.
Re: Yellen says government will help SVB depositors but rules out bailout
#13This actually makes a ton of sense, lets not forget that a bailout in this term is really pointing towards saving the bank itself, and its shareholders. There is inherent risk in equity investments, and it likely should have to suffer for its poor decisions. But when it comes to depositors, I think it makes a lot of sense to make them whole, especially in the case of SVB where the bank likely has pretty close to enou…
Did they help depositors that lost money in the last 500+ bank collapses? Why do they get special treatment? The government has laws and rules the depositors are insured up to 250k. Either they liquidate and everyone takes a hair cut. Or they wait till the bonds mature and can pay them out. But the government should not relieve anyone past what is legally available.
Re: Yellen says government will help SVB depositors but rules out bailout
#14[flagged]
a bailout, would mean the bank and its shareholders would survive. Making depositors whole is about not having people lose faith in the banking industry.
Re: Yellen says government will help SVB depositors but rules out bailout
#15[flagged]
SVB probably has enough assets to make most depositors largely whole, but it'll take time. Shareholders are going to wear a total loss. Which sucks for them but this is part of share market game. I suspect cooler heads will not prevail. And there will be much silliness Monday morning.
This keeps getting repeated, but no, they don’t have enough assets to make depositors whole.
A bond that matures in 10 years does not make anyone whole. That’s like saying “I know I owe you money today, but don’t sweat it, I’ll get you the money in 10 years”. These arguments completely ignore the time value of money.
Re: Yellen says government will help SVB depositors but rules out bailout
#16[flagged]
I am not sure why you are so bitter but it’s important do understand that all you do is create more hate with comments like this. The only thing anyone is asking for is to protect the deposits of the people who bank(ed) with SVB. That is it.
Op is not bitter but realistic... Deposits are insured up to 250 thousand. Above they do incur risk..
Re: Yellen says government will help SVB depositors but rules out bailout
#17Some people just want to see the (tech) world and the VC pyramid scheme collapse. This time, Silicon Valley has to help itself with this mess it created.
Some startups like Circle with large backers will survive, but others on the other hand need more than a miracle or a hero.
I would not want to see the chaos underneath in bookface right now and certainly the collapse with in less than 24 hours.
Re: Yellen says government will help SVB depositors but rules out bailout
#18I like it, let capitalism work as intended by culling out the weak. They should have done the same with GM and Chrysler instead of bailing them out, we'd have a faster transition to electric today.
There's strategic reasons to have those companies beyond they employ a stack of people. The US sees the big auto makers through they eyes of a country that needed at one point to start manufacturing around 100,000 bombers to fight in a war.
Government sees industry with a different lens to the markets.
Re: Yellen says government will help SVB depositors but rules out bailout
#19This actually makes a ton of sense, lets not forget that a bailout in this term is really pointing towards saving the bank itself, and its shareholders. There is inherent risk in equity investments, and it likely should have to suffer for its poor decisions. But when it comes to depositors, I think it makes a lot of sense to make them whole, especially in the case of SVB where the bank likely has pretty close to enou…
Did they help depositors that lost money in the last 500+ bank collapses? Why do they get special treatment? The government has laws and rules the depositors are insured up to 250k. Either they liquidate and everyone takes a hair cut. Or they wait till the bonds mature and can pay them out. But the government should not relieve anyone past what is legally available.
My guess ( I havn't looked at is the last ones ) is that the majority of deposits were well under 250k, and that hundreds of thousands of jobs weren't on the line.
Also, you are talking about a major banking collapse if people start thinking that their deposits aren't safe. (a lot of people will start pulling money, even if under 250k). There are so many irrational people out there...
edit: I guess somewhere in what I said was confusing, I was referring to past fails where most deposits were likely well under the 250k. NOT SVB where the vast majority were well above that threshold.
Re: Yellen says government will help SVB depositors but rules out bailout
#20This is exactly the statement that's required, given the confusion and irresponsible politicization of deposit insurance.
Shareholders lose 100%, depositors get 100% of their deposits back. It's a simple situation, and the former point (as opposed to the solution during the GFC) counteracts moral hazard.