Yellen said Sunday that the federal government would not bail out Silicon Valley Bank
Here's a crazy free market idea: if your business fails, you go broke like the rest of us would. No Daddy government comes to bail you out no matter how big you are.
Yeah, but free money for Ukraine 🇺🇦 tho
You mean a cheap proxy war with Russia that doesn’t cost any U.S. military lives? Yep.
Are you really comparing the safety and security of the US and our military to a bunch of greedy startup founders?
Dude, she said not bailing investors. They are trying to bail uninsured depositors, which would be small businesses aka the average startup needing to make payroll with employees. I don't see that as a wrong move.
I don't think you understand the implications here. Business is not going broke because of bad bets or management. They are going broke because the bank they chose went under. The bank which was in market for 40 years, and they didn't park their money in massive speculative products instead parked their money in current and saving account or business account. On SVB end they did miss the bus on risk management in regards to investing in long term bonds using short term cash - saving and business account cash. But punishing businesses is just like punishing a normal citizen who is going to put their money in chase, wells Fargo or bofa. The reason I say this is because this will set precedence every customer will need to do their own due diligence in understanding where banks are parking their cash which is massive slippery slope. Idk if you even know how basic financial system works. Government is doing it to act tough which is bad thing
Yes, SVB management has a LOT to answer for. Wtf were they doing throughout 2022 as the rate hike drumbeat was rising.
Is is the Government’s fault that said business had millions in accounts that is always disclosed to be insured by the FDIC for $250K? Government is acting tough because the current thought today that they will step in, using taxpayer’s money of course, to bailout the businesses. If you have a banking account that has a sum that exceeds the insured amount by the financial institution you’re using, that’s the risk you take. Apparently, Silicon Valley needs some risk management training….
I think OP is talking about SVB shareholders, i doubt he means the depositors.
Let it fail. Corporate welfare queens should take responsibility for their actions.
How about printing more money to save it. Let inflation rate go to 50%. Then my houses and my stocks will worth much more, and my mortgage payments will become peanuts. F*ck the poor
Shareholders should get wiped out but depositors can be saved
Main people hurt by this are the Silicon Valley grifters, the same ones trying to spin up fear and panic wanting a taxpayer bailout.