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There are political forces on both the left and the right against bailing out depositors because the startup industry is hated. We need to protect our industry
by ummonk 4y ago
There are political forces on both the left and the right against bailing out depositors because the startup industry is hated. We need to protect our industry from further damage, including by being ahead of bank runs on other banks. If that results in triggering those bank runs, so be it.
- flangola7 4y agoStartup industry is bad, why should we protect it? There's very few things awful enough to attract bipartisan hate.
- ummonk 4y agoDrives economic growth, creates jobs, and increases labor market competition amongst employers which leads to higher wages. The latter function is particularly salient for tech people (which many of us who follow HN are).
- flangola7 4y agoA heap of parroted buzzwords is not very convincing.
- SkyMarshal 4y agoNeither is evidence-less overly-general assertions like “startup industry bad”.
- swsieber 4y agoHere's (admittedly weak) evidence: calling for actions that lead to bank runs. It's hard to take defense of startups seriously where startups are blatantly going to screw others over for their own sake. Do I get it? Yes. But it's more than me vs them; they made it an "us" vs them.
- ummonk 4y agoThe "them" in this case are those who gleefully point out that only 250k is insured by the FDIC and any startup that deposited more than that was engaging in risky behavior and deserves to lose their money. In such a situation, you can't cry foul on those seeking to move their money into safer banks, even if doing so precipitates a bank run.
- salawat 4y ago...I mean, I learned about the FDIC caps in like 7th grade... And my parents also made sure I was aware of it. Where are all these people who don't know how the system works coming from? Who is advising them?
- flangola7 4y agoBut I'm not trying to be convinced of that; that fact is self-evident.
- SkyMarshal 4y agoNo it isn't.
- flangola7 4y agoI literally just said it is. >that fact is self-evident. What part of this very simple sentence was unclear?
- SkyMarshal 4y agoJust because you said it is doesn’t make it so. It’s not self-evident that the startup industry is bad.
- flangola7 4y agoIt's self-evident because it's self-evident. Please don't say incorrect statements like the ones you just made. The fact that startup culture is bad isn't in dispute.
- swsieber 4y agoMmm... like strong encryption? Plenty of good things get bipartisan hate.