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I generally would prefer not, but I also agree with DM. If it is some other banks, republicans/democrats will be rushing in to bail them out already.
False Equivalency! Banks in the Midwest aren't as stupid as silicon Valley bank.
So what? The whole banking sector was stupid AF in 2008 and they all got bailed out. The airline industry and oil industry all got bailout during COVID. The 1000 startups banking with SVB didn’t do anything wrong themselves, are they getting any bailout? Since the root cause of all this is the inflation created by Fed.
They should broker a one dollar acquisition by a big bank that can wait for the bonds to reach maturity. And that's probably what they are doing now.
Not sure if I understand the situation correctly, but bonds would lose a lot of value if there's no bailout. The traditional low risk asset just showed it's more risky than expected and the government had showed it's unreliability in maintaining the risk status quo. This may cause fear tremors throughout the bonds market
Let's add to it the impact on the economy. Bankruptcy (or even financial insolvency) of many start-ups will affect the innovation and larger economy as a whole. (Startups provide crucial services and payments as well to other companies.) The economy is already shaky and this would be another piece of dominoes to fall. No good for competing with China on the innovation front too when the US government's actions are indirectly ending innovation.
Bond price will go out once interest rate declines. Bond price has nothing to do with it. If more businesses fail, maybe fed will start QE sooner