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The plan was to cause problems in the labor market. They wanted all types of companies including startups and banks to layoff lots of workers hoping many of tho
by gitfan86 4y ago
The plan was to cause problems in the labor market. They wanted all types of companies including startups and banks to layoff lots of workers hoping many of those workers would become desperate and take any job at any wage which would drop labor prices and also inflation due to people having less money to spend.
Somehow they didn't understand that it is much easier to move money from low yield bank accounts to higher yield t-bills than to fire lots of employees and then rehire others at lower wages in an already tight labor market.
- ISL 4y agoThose higher yield t-bills are a great way for banks to make money, too. SVB is a case of misreading the trend and getting caught out. I see a ton of banks offering CDs at half a percent below the matching T-bills rate....
- gitfan86 4y agoSBV is a symptom of the whole SV culture over the past few years. Crypto, Over Hiring, Over paying, 100x ARR valuations, are all tied together. A frenzy of greed and incompetence took over the industry (partially due to ZIRP), it all had to come crashing down at some point. Just like in 2007 when everyone said that houses only go up in price every year. That just isn't reality.