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> So people with this much wealth asking for a bailout is literally rich people asking for coverage because they did something dumb Not people. Businesses. S
by madamelic 4y ago
> So people with this much wealth asking for a bailout is literally rich people asking for coverage because they did something dumb
Not people. Businesses.
SVB, to my knowledge, mostly consisted of businesses with some well-off individuals mixed in.
If we want to punish rich people for the crime of being rich, SVB is likely a bad battlefield because zero-ing out its customers will almost entirely hurt employees who are generally not wealthy.
- ivalm 4y agoDepositors aren’t being zeroed out, they will just maybe take a haircut. I do hope FDIC finds a way to unfreeze at least meaningful fraction by tomorrow so payroll/etc can be met.
- prepend 4y agoBusinesses owned by rich people. I don’t think we should punish the rich for being rich. But we should reward the rich for being stupid (ie, not managing cash risk). These companies with cash flow issues have rich investors. YC and other VCs. They have ways to deal with this loss in the private sector. Or they can go out of business.