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It does owe something. They have a cash flow problem, because the bank made a poor risk management decision and when big money people like Thiel figured it out,
by Spooky23 4y ago
It does owe something. They have a cash flow problem, because the bank made a poor risk management decision and when big money people like Thiel figured it out, they had their minions and companies run the bank. If you have $100 in cash and a $1M house and you owe me $10k, I’m gonna put a lien on your home and liquidate it for my money.
Now the people who missed the memo are crying about it. Guys like Sacks have taken to Twitter to cry and whine about how they are like poor farmers or whatever.
The reality is the FDIC is good at what it does, and it’s probably best to wait until tomorrow before getting hot and bothered about it. If you want to get angry, ponder how the people who coordinated the bank run got the information used to trigger it.
- stanleydrew 4y agoWhat incentive does someone like Thiel have to induce a run at SVB?
- toast0 4y agoPrimarily, his portfolio companies have an incentive to have access to their deposits. He probably gains reputation by advising people to get out of a bank that fails. Although he probably advised them to use it in the first place.
- Spooky23 4y agoIt’s not an incentive thing. It’s a major player creating a panic.