4 ms·

The entire Silicon Valley Bank debacle was started by a single blogger in Austin

21 points by rmason 4y ago

nmca 4y ago
Not sure if it's what OP intended but I signed up to the newsletter.
mvdl 4y ago
The debacle was started by SVB, I personally find it unfair to blame mismanagement on a whistleblower.
- jsemrau 4y ago
  I heard they didn't hedge their interest rate risk. If true this sounds like a rookie mistake.
- voisin 4y ago
  We have a bad habit as a society of blaming whistleblowers and short sellers for the misdeeds of others.
  - cyanydeez 4y ago
    Or rather, society wants to blame individuals because corporations have been centerpieces in all forums.
- yucky 4y ago
  Blame? Sounds more like giving credit where it's due.
- squalo 4y ago
  is the guy who pays for the blue checkmark the same guy who pasted the link to his own tweet?
Overtonwindow 4y ago
Interesting.. Reminds me of the South Korean financial blogger who was arrested for causing a dip in the stock market with his blog posts. One person, one post, can really cause major things to move. https://www.wired.com/2009/10/mf-minerva/ https://www.wired.com/2009/10/mf-minerva/
- pixl97 4y ago
  Imagine a large rock balanced on the edge of a precipice, it could be a strong breeze, an ice heave, or somebody pushing on it... but none of those agents pushed the rock out on the edge in the first place.
jacknews 4y ago
So what's this, shoot the messenger? It seems to me this whole debacle was ultimately caused by the fed's aggressive rate rises due to their wrongheaded obsession with inflation.
- cosmotic 4y ago
  How can you blame the fed for the bank not having funds to cover the deposits?
  - Ekaros 4y ago
    Because actions of fed made the bank unstable. By lowering value of things it hold And then other people attacked it causing a bank run that put it over the edge. Without the run, it likely could still be operating without too big issues.
    - cosmotic 4y ago
      The bank chose to make risky investments with the deposits it held. That's on the bank, not the fed.
      - jacknews 4y ago
        US Treasuries?
  - throwwwaway69 4y ago
    The Fed (the reserve and the FDIC) in addition to The Office of the Comptroller of the Currency regulate banking practices. If banks are failing then it's the lack of proper regulation that's responsible.
    - 7e 4y ago
      Regulation is not to designed to prevent every failure. Banks are private, not owned by the state, as the U.S. is a capitalist system.
Barrin92 4y ago
>Kinda insane that this entire debacle was potentially caused by @ByrneHobart 's newsletter No. If one blog post can take down your company the issue isn't the blogpost, it's the environment that enabled that blog post to do the damage. This is the equivalent of the "one gunshot caused WW I" logic. Stop blaming the last person to pull a piece out of the Jenga tower
hackeraccount 4y ago
If only we didn't know none of this would be happening.

21 points by rmason 4y ago

nmca 4y ago

Not sure if it's what OP intended but I signed up to the newsletter.

mvdl 4y ago

The debacle was started by SVB, I personally find it unfair to blame mismanagement on a whistleblower.

jsemrau 4y ago
I heard they didn't hedge their interest rate risk. If true this sounds like a rookie mistake.
voisin 4y ago
We have a bad habit as a society of blaming whistleblowers and short sellers for the misdeeds of others.
- cyanydeez 4y ago
  Or rather, society wants to blame individuals because corporations have been centerpieces in all forums.
yucky 4y ago
Blame? Sounds more like giving credit where it's due.
squalo 4y ago
is the guy who pays for the blue checkmark the same guy who pasted the link to his own tweet?

Overtonwindow 4y ago

Interesting.. Reminds me of the South Korean financial blogger who was arrested for causing a dip in the stock market with his blog posts. One person, one post, can really cause major things to move. https://www.wired.com/2009/10/mf-minerva/ https://www.wired.com/2009/10/mf-minerva/

pixl97 4y ago
Imagine a large rock balanced on the edge of a precipice, it could be a strong breeze, an ice heave, or somebody pushing on it... but none of those agents pushed the rock out on the edge in the first place.

jacknews 4y ago

So what's this, shoot the messenger? It seems to me this whole debacle was ultimately caused by the fed's aggressive rate rises due to their wrongheaded obsession with inflation.

cosmotic 4y ago
How can you blame the fed for the bank not having funds to cover the deposits?
- Ekaros 4y ago
  Because actions of fed made the bank unstable. By lowering value of things it hold And then other people attacked it causing a bank run that put it over the edge. Without the run, it likely could still be operating without too big issues.
  - cosmotic 4y ago
    The bank chose to make risky investments with the deposits it held. That's on the bank, not the fed.
    - jacknews 4y ago
      US Treasuries?
- throwwwaway69 4y ago
  The Fed (the reserve and the FDIC) in addition to The Office of the Comptroller of the Currency regulate banking practices. If banks are failing then it's the lack of proper regulation that's responsible.
  - 7e 4y ago
    Regulation is not to designed to prevent every failure. Banks are private, not owned by the state, as the U.S. is a capitalist system.

Barrin92 4y ago

>Kinda insane that this entire debacle was potentially caused by @ByrneHobart 's newsletter No. If one blog post can take down your company the issue isn't the blogpost, it's the environment that enabled that blog post to do the damage. This is the equivalent of the "one gunshot caused WW I" logic. Stop blaming the last person to pull a piece out of the Jenga tower

hackeraccount 4y ago

If only we didn't know none of this would be happening.