SVB shows that there are few libertarians in a financial foxhole
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Re: SVB shows that there are few libertarians in a financial foxhole
#2https://t.co/kw7ykC3763
Without paywall courtesy of FT twitter post
Re: SVB shows that there are few libertarians in a financial foxhole
#3A while back, a small regional coop bank defaulted here in India and could not pay its depositors. The depositors had to protest and camp outside the bank for several days. Most of these were ordinary folks, many retirees, who were just trying to keep their savings in a neighborhood bank.
Of course, since this was a political issue and the depositors were innocent, the government stepped in and promised to make them whole.
While this move was welcomed, even in a country with deeply entrenched socialist values like India, there were quite a few voices asking: "why did you keep your money in a tiny bank like that and not a major national bank?"
I understand that SVB was doing a lot for Silicon Valley, but when it was one of the few (perhaps only) that allowed anyone to open a bank account without visiting the country (it was also a part of Stripe Atlas), one should have asked if they were practicing proper risk management. If no other bank does this, but you do, it does indicate that there's a certain approach to risk in your entire business operations. And that approach can eventually manifest in making some very poor bets without adequate hedging.
Re: SVB shows that there are few libertarians in a financial foxhole
#4Somewhat mangling what I believe is the commonly accepted phrase: 'No atheists in a foxhole, no libertarians in a bank run'
Re: SVB shows that there are few libertarians in a financial foxhole
#5https://t.co/kw7ykC3763 Without paywall courtesy of FT twitter post
So I'm assuming that's a link posted on twitter that includes some flag that prevents the site from paywalling the article? Neat.
I'll still post a humble archive link as well.
Re: SVB shows that there are few libertarians in a financial foxhole
#6Prominent libertarians who opposed intervention:
https://johnhcochrane.blogspot.com/2023/03/silicon-valley-ba...
https://twitter.com/CliffordAsness/status/163512097142539468...
https://twitter.com/RepThomasMassie/status/16350699533753425...
Re: SVB shows that there are few libertarians in a financial foxhole
#7Central gov't making statements to quell a bank run is one of the few things most libertarians will always say is properly in the federal toolkit.
Re: SVB shows that there are few libertarians in a financial foxhole
#8Is there a term for someone that is libertarian inclined, but does believe in a minimal level of government regulation and intervention? A "Lite-Libertarian" of sorts.
Re: SVB shows that there are few libertarians in a financial foxhole
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Re: SVB shows that there are few libertarians in a financial foxhole
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