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What if the restaurant employs 5 people? 500 people? 50,000? 5,000,000 people? Sometimes it actually pays to evaluate breaking a policy if the harm of followin
by thephyber 4y ago
What if the restaurant employs 5 people? 500 people? 50,000? 5,000,000 people?
Sometimes it actually pays to evaluate breaking a policy if the harm of following it is larger than the harm of coming up with a different decision. How much does the US Treasury expect to lose in tax revenue if SVB’s customers are stuck with frozen accounts or the assets are sold at too steep of a discount just to get them resolved quickly?
The use of bailout here seems to be using a tainted term to spread taint to the victim. The restauranteur is a depositor. His assets can be very nearly made while so long as there is no fire sale on the bank assets. The “bailout” is really just providing sufficient liquidity to keep the bank working. It’s only insolvent so long as it has short term liquidity issues.