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Don’t stop there. What happens after they fail? A flight to perceived strength. The top of the market would be the only place where people would feel safe parki

by ianai 4y ago

Don’t stop there. What happens after they fail? A flight to perceived strength. The top of the market would be the only place where people would feel safe parking their funds. Think Wells Fargo, Goldman, USBank, etc. Now consider which would be the better buy. Twitter for $40 something billion or bail all these investors out for similar money and own the startup banking business almost entirely. I know what id do if I was sitting on billions looking for capital returns ala Apple. (Apple could outright buy this market, use the returns from banking to issue monthly/quarterly dividends, and still have hundreds of billions in cash. They could then buy some significant portion of the emerging launch market. Wait a few years to mature. Then declare their checkmate on the global economy. Edit-correction, they’ve done buybacks so they’d have to issue some stocks or raise funds. Point remains.)

belter 4y ago
Nice try to transform the US government into a VC of last resort. We should be reminded that 90% of startups fail. "106 Must-Know Startup Statistics for 2023 - Embroker" - https://www.embroker.com/blog/startup-statistics/#:~:text=03-,Startup,About%2090%25%20of%20startups%20fail.&text=10%25%20of%20startups%20fail%20within%20the%20first%20year.&text=Across%20all%20industries%2C%20startup%20failure,be%20close%20to%20the%20same.&text=Failure%20is%20most%20common%20for,70%25%20falling%20into%20this%20category https://www.embroker.com/blog/startup-statistics/#:~:text=03....
- ianai 4y ago
  I didn't say the US should bail the bank out. The USG should act to ensure the depositors of the bank are made whole because otherwise the market would get even more concentrated. The quip about buying the startup banking sector underscores the 'cheapness' of the purchase for any bank or entrant. All the USG need do is act as a matchmaker and maybe some kind of clearing house.

by ianai 4y ago

belter 4y ago

Nice try to transform the US government into a VC of last resort. We should be reminded that 90% of startups fail. "106 Must-Know Startup Statistics for 2023 - Embroker" - https://www.embroker.com/blog/startup-statistics/#:~:text=03-,Startup,About%2090%25%20of%20startups%20fail.&text=10%25%20of%20startups%20fail%20within%20the%20first%20year.&text=Across%20all%20industries%2C%20startup%20failure,be%20close%20to%20the%20same.&text=Failure%20is%20most%20common%20for,70%25%20falling%20into%20this%20category https://www.embroker.com/blog/startup-statistics/#:~:text=03....

ianai 4y ago
I didn't say the US should bail the bank out. The USG should act to ensure the depositors of the bank are made whole because otherwise the market would get even more concentrated. The quip about buying the startup banking sector underscores the 'cheapness' of the purchase for any bank or entrant. All the USG need do is act as a matchmaker and maybe some kind of clearing house.