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Message
re: Bill Ackman: Government has 24 hours to fix Silicon Valley Bank debacle
Posted on 3/12/23 at 12:58 pm to TigerinOkieHell
Posted on 3/12/23 at 12:58 pm to TigerinOkieHell
quote:
This triggered a bank run by VCs so the bank ran out of cash (or was going to) and the FDIC took them over to figure out a game plan. Now the VC’s have all realized they threw all their cash in one bank which is only insured to $250k so they’re screaming to get bailouts claiming the end of the world is coming if we don’t. Which no isn’t happening. Worst case if the assets were sold off uninsured deposits probably AT WORST get 80 cents on the dollar. Most likely though a bank buys them and they’ll be fine. Just more sky screaming from people who probably last year were telling us how the government shouldn’t be involved in things.
You sure are one naive motherfricker
1
Posted on 3/12/23 at 1:02 pm to RogerTheShrubber
quote:
An economy cant work at all if there's no repercussions.
In the 2008 mess, lots of the European money folks went to jail. In the US only 1 low level guy went to jail and it was for like 18 months.
If you want to send a mesage you sent the high up white collar perps to some place like Angola for a decade at least.
Posted on 3/12/23 at 1:19 pm to Street Hawk
quote:
As Larry Summers said, this is not the time for lectures on moral hazard.
frick off, Larry
Posted on 3/12/23 at 1:20 pm to TigerinOkieHell
Honestly a few of the startups going under probably isn’t the worst thing
Posted on 3/12/23 at 1:39 pm to MikeD
The notion that SVB was just for startups is fricking absurd and ignorant.
Roku had over 500 million in cash deposits at SVB. Zip recruiter, Shopify, the list goes on and on.
Roku had over 500 million in cash deposits at SVB. Zip recruiter, Shopify, the list goes on and on.
Posted on 3/12/23 at 1:47 pm to Street Hawk
quote:
this is not the time for lectures on moral hazard
Absolutely. The time for lectures on moral hazards are when they are purely theoretical and no pain is required, not when one is real and staring us square in the face.
Posted on 3/12/23 at 1:48 pm to DCtiger1
quote:
Roku had over 500 million in cash deposits at SVB. Zip recruiter, Shopify, the list goes on and on.
And? Perhaps they should have better diversified their account holdings.
Posted on 3/12/23 at 1:52 pm to ned nederlander
Failure of regulators comes to play into this. Seeking Alpha ran a story breaking down all of their potential issues and calling this in late 2022.
Regulators were asleep at the wheel as it happened, as the situation metastasized and then came in on the back end. Bank leadership needs to go down and the higher ups should be shown no quarter.
But depositors aren’t to blame or at fault. The rank and file types-whether under $250K or in the Millions-did nothing to experience this issue.
There’s an argument they should have diversified their capital holdings across institutions. But that doesn’t make them at fault.
Regulators were asleep at the wheel as it happened, as the situation metastasized and then came in on the back end. Bank leadership needs to go down and the higher ups should be shown no quarter.
But depositors aren’t to blame or at fault. The rank and file types-whether under $250K or in the Millions-did nothing to experience this issue.
There’s an argument they should have diversified their capital holdings across institutions. But that doesn’t make them at fault.
Posted on 3/12/23 at 1:57 pm to Street Hawk
quote:
Government has 24 hours to fix
Posted on 3/12/23 at 2:01 pm to RogerTheShrubber
VC people and bank executives are already rich. They will be fine.
Posted on 3/12/23 at 2:06 pm to Cheese Grits
quote:
About half the money lost was private equity gambles
Let them fail
Absolutely. If I bet $1M on the Saints to win the Super Bowl and they don’t, the government doesn’t scramble in to give me my million back. I have a basic understanding of why bailouts happen, but they seem anti-capitalism to me.
Posted on 3/12/23 at 2:13 pm to High C
quote:
If I bet $1M on the Saints to win the Super Bowl and they don’t, the government doesn’t scramble in to give me my million back.
NFL owners are loaded up with government handouts
quote:
I have a basic understanding of why bailouts happen, but they seem anti-capitalism to me.
Capitalism is not free market. Game Theory is the best but Public Choice Theory says it does not work if a few hold political or economic power and rig the game in their favor at the expense of the citizens.
Posted on 3/12/23 at 2:17 pm to DCtiger1
quote:
Roku had over 500 million in cash deposits at SVB. Zip recruiter, Shopify,
So now these size and type businesses qualify as too big to fail?
Posted on 3/12/23 at 2:19 pm to TigerinOkieHell
quote:
TigerinOkieHell
Poli-board told me it's because svb was woke
Posted on 3/12/23 at 2:20 pm to Cheese Grits
People have transformed capitalism from what it was meant to be (a series of rationals to help resource allocation) into some weird fever dream of divine mandate of greed
Posted on 3/12/23 at 2:25 pm to athenslife101
quote:
People have transformed capitalism from what it was meant to be (a series of rationals to help resource allocation) into some weird fever dream of divine mandate of greed
frickin this!
The stock market should exist to provide capital to businesses at a modest return. This business of sales and profit growth quarter over quarter into oblivion or your stock tanks is crazy.
Posted on 3/12/23 at 2:26 pm to DCtiger1
quote:
Roku had over 500 million in cash deposits at SVB. Zip recruiter, Shopify, the list goes on and on.
OK, so they are profitable business and should be able to restock the reserves.
Posted on 3/12/23 at 2:35 pm to DCtiger1
quote:
You sure are one naive motherfricker
Licensed CPA but okay boss.
Posted on 3/12/23 at 2:37 pm to GFunk
I don’t know enough details but it sounded like SBV did this to themselves. Banks have to go through stringent stress testing. I can say that is a fairly intense process, but it sounded like the panic they created Wednesday with how they announced their shortfall well exceeded their scenarios.
I think the biggest fallout from this is just the risks of small regional banks
I think the biggest fallout from this is just the risks of small regional banks
Posted on 3/12/23 at 2:45 pm to DCtiger1
quote:
Roku had over 500 million in cash deposits at SVB. Zip recruiter, Shopify, the list goes on and on.
Is a list available? I need to see which of my clients are about to be a problem.
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