Uh, just want to point out that it wasn’t the “Techbro Geniuses” who failed— it was the BANK. Yes, government does have the obligation to step in when a bank fails. And then take steps to make sure the bank isn’t allowed to fail again.
There were at least some companies that had more than $250k at SVB, because even with 50 employees, your payroll is well over that amount. Maybe make employers carry insurance to protect against their main bank going under?
It looks like the money lent to the FDIC to help cover SVB has already been returned to the Treasury.
Not enough room on that check to write in the amount Biden gave away.
Anyone worried about their bank? Well, if you put your funds in the First National Panda Bank, you can relax and sleep well. Trust me, would I lie to you? So get your money, cash only, no cheques, put it in a brown paper deposit bag and deposit it in my garden shed.
You’ll be glad you did, I know I will.
I lean communist, but I’ve been educated (or brainwashed, it’s hard to know which), about SVB. For one thing, blaming “techbros” is like blaming the residents of Bedford Falls (It’s a Wonderful Life). There were businesses that used the bank to process payroll and typical business transactions. It’s not surprising to me that they might have more than $250K in the bank. For another, the investments were supposedly “safe” investments; long-term bonds. The problem arose when interest rates leaped upward. People (quite reasonably, IMO) took advantage of the increase by shifting their assets into higher-paying investment vehicles – but SVB didn’t have their money as cash. And their bonds were plunging in value. Sayonara, SVB.
The decision to “make customers whole” seems foolish at first, but I don’t think the government is throwing out as much money as it appears to be. Those long-term bonds will pay off – eventually. And, if nothing is done, game theory suggests that everyone will bail if nothing is done.
The government has been creating massive amounts of money from thin air for a long time. Maybe, for once, it’ll turn out to be the right move.
My favorite is “Techbro Dinguses”.