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Thank you for this. In a discussion elsewhere, the moment I mentioned my opposition to a bailout, the immediate response was, "Sounds like you haven’t run a st
by wpietri 4y ago
Thank you for this.
In a discussion elsewhere, the moment I mentioned my opposition to a bailout, the immediate response was, "Sounds like you haven’t run a startup ¯\_(ツ)_/¯". I've started 4 companies, one of them a classic venture-backed thing.
The immediate assumption of "Oh, you people who are not as me and just can't possibly understand tech, so you don't get to have an opinion," is exactly the sort of arrogant exceptionalism that got a lot of people into this jam. Like, I get that it's awful to realize one's business is possibly doomed. I have been there. But in that moment to flail around and blame others rather than understanding the mistake? That's a great way to keep making the same sort of arrogant mistakes.
- mlyle 4y agoAnd, in turn, thank you for your comment. > is exactly the sort of arrogant exceptionalism that got a lot of people into this jam Well, I don't think you start a business if you're being entirely rational, either. You basically need an outsized belief in your own capabilities and need to have the erroneous belief that you entirely control your own destiny. Black swan events that might entirely wipe you out and that are completely out of your control cause cognitive dissonance. I do think FDIC should choose to incur some amount of risk of being surprised by additional liabilities by making a quick dividend payment. The benefits of keeping things moving and adding some clarity soon outweigh a small risk of partially bailing out losses.
- wpietri 4y agoOh agreed. And I think the FDIC will be doing that. On Friday they promised "an advance dividend within the next week": https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/silicon-valley.html https://www.fdic.gov/resources/resolutions/bank-failures/fai...