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It was just yesterday that there were pages of comments here on HN filled with people talking about how there should be no bank reserves. The arguments were tha
by IncRnd 4y ago
It was just yesterday that there were pages of comments here on HN filled with people talking about how there should be no bank reserves. The arguments were that cash flow is king and reserves are bad for the economy.
- AlchemistCamp 4y agoPretty much anyone on the internet can make an account here. Surely you don’t expect everyone to agree with what everyone else has said just because it’s on the same site!
- IncRnd 4y agoIn the same way, surely you don't expect taxpayers to agree with what SVB's account holders want, just because they are on this site!
- AlchemistCamp 4y agoFWIW, I am a taxpayer and am not a SVB bank account holder. I don’t want to see this spin out of control on Monday when all those companies can’t make payroll and even more carnage ensues. This could blow up into a much much bigger panic contagion.
- IncRnd 4y agoThank you I do understand that. Maybe, just maybe, instead of us collectively trying to manage the latest collapse, perhaps we could impose actual requirements (not regulations) on banks. There have been 562 bank collapses since 2001. I doubt that many people who work outside of finance would think the balance sheets of those banks look like anything like what people would expect in a stable "bank". It's insane that very few banks in the country can reasonably withstand bank runs. The reason? They have no money on hand, because they are gambling. Sure, the ecosystem would change, but that's not a bad thing.
- muzz 4y ago1. It won't spin out of control. 2. Stock in SVB (market capitalization) is $6B. Deposits are almost $200B. Depositors who had put more than 250k did so willingly knowing the risks.
- deleted 4y ago[deleted]