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That assumes a level of individualism that mostly doesn't exist. It doesn't matter if you are first in line if your customers are 1,000th in line: your business
by roguecoder 4y ago
That assumes a level of individualism that mostly doesn't exist. It doesn't matter if you are first in line if your customers are 1,000th in line: your business is going under either way.
- lolinder 4y agoIf your business isn't B2B, then any customers that you have are almost certainly fully FDIC insured. And even if you're B2B, if you're 999th in line and your customers are 1000th in line, you're even more screwed. If you're first in line you at least have some remaining assets even if you have no customers. If your assets evaporate at the same time as your customer base then you have nothing.
- hn_throwaway_99 4y agoI'm quite sure that businesses that got their cash out of SVB yesterday, and can thus make payroll today, are extremely glad they did so. Not all bank runs are systemic in nature.
- jen20 4y agoThat wasn’t the point: they can be as happy as they like about making payroll today, but they’ll be screwed when their customers don’t make their invoices tomorrow.
- hn_throwaway_99 4y agoMy point is that not all of their customers were also SVB clients. It's faulty logic to assume that everyone's screwed because one bank failed.