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People like Jason Calcanis were screaming on Twitter like the world was going to collapse and that the contagion would take down regional banks hurting ordinary

People like Jason Calcanis were screaming on Twitter like the world was going to collapse and that the contagion would take down regional banks hurting ordinary consumers. All because he wanted the government to bail out his startups.

skwirl 4y ago
Did you miss the part of this press release where they announced that Signature Bank collapsed today? That makes it pretty clear that the contagion was real. Treasury’s actions make it abundantly clear as well.
- threeseed 4y ago
  There are 4,500+ commercial banks in the US with 70,000+ branches. The idea that regional banks were going to collapse en masse because of the actions of one ineptly managed, highly unusual (in terms of customer and deposit mix) bank is ridiculous. And trying to deliberately create a scare campaign so you can put political pressure on the FDIC to cover uninsured amounts is insidious and frankly evil.
  - skwirl 4y ago
    Ok but did you really not address the fact that Signature Bank literally collapsed today? You know that is a different bank, correct? Did you see the stocks and sector ETFs for regional banks last week?
    - delfinom 4y ago
      ETFs have weightings. SVB actually was a big portfolio piece for some ETFs. Especially because during COVID and the money printer boom, SVB stock went to the moon and hit $800 / share at one point. I don't think ETFs are a good sign. One of my favorite bank ETFs, PGF is only down 6% on sentiment which isn't much.
    - paganel 4y ago
      One bank collapsing (because of crypto shenanigans, as I've read in another article) does not make for a contagion.
  - tinco 4y ago
    And you think Jason who-the-fuck-cares-about-what-he-thinks Calacanis somehow has a meaningful role in a scare campaign? He was just one of the scared people. And guess what, the FDIC and the administration actually do believe there was a clear risk of regional banks going under. That's literally the topic of the article you're commenting under. I feel this solution is too strong handed and I don't think the world would have ended if there wasn't a solution tomorrow and a hundred startups would have to take a 20-30% haircut on their raised funds by selling their claims, so I don't agree with Jason, but calling him evil for his standpoint and voicing it is what's ridiculous.
duxup 4y ago
I see lots of screaming on twitter, I don't find this unusual or particularly bad. Everyone would want their money back ...
flappyeagle 4y ago
But he was right? Certainly Yellen thought so. Why is screaming on twitter such a crime? Just block him.
vkou 4y ago
> People like Jason Calcanis were screaming on Twitter like the world was going to collapse and that the contagion would take down regional banks hurting ordinary consumers. If the 18th-largest bank in the country were to be allowed to collapse, with depositors losing money due to something they had no control over, why would any non-insane depositor keep their money in the 17th, or the 19th largest bank? Any rational person will follow this line of reasoning to conclude that the only safe place to deposit your money would be a too-big-to-fail bank. And nobody wants to see that.
- theGnuMe 4y ago
  FDIC insures accounts to $250k. Why would any sane and rational person put more than $250k in any one account?
  - duxup 4y ago
    Because you don’t want a lot of accounts?
ssnistfajen 4y ago
If SVB did fail with depositors not getting more than $250k back then it would be a contagion. I did find some VC tweets overly dramatic but the underlying messaging is still right.

skwirl 4y ago

Did you miss the part of this press release where they announced that Signature Bank collapsed today? That makes it pretty clear that the contagion was real. Treasury’s actions make it abundantly clear as well.

threeseed 4y ago
There are 4,500+ commercial banks in the US with 70,000+ branches. The idea that regional banks were going to collapse en masse because of the actions of one ineptly managed, highly unusual (in terms of customer and deposit mix) bank is ridiculous. And trying to deliberately create a scare campaign so you can put political pressure on the FDIC to cover uninsured amounts is insidious and frankly evil.
- skwirl 4y ago
  Ok but did you really not address the fact that Signature Bank literally collapsed today? You know that is a different bank, correct? Did you see the stocks and sector ETFs for regional banks last week?
  - delfinom 4y ago
    ETFs have weightings. SVB actually was a big portfolio piece for some ETFs. Especially because during COVID and the money printer boom, SVB stock went to the moon and hit $800 / share at one point. I don't think ETFs are a good sign. One of my favorite bank ETFs, PGF is only down 6% on sentiment which isn't much.
  - paganel 4y ago
    One bank collapsing (because of crypto shenanigans, as I've read in another article) does not make for a contagion.
- tinco 4y ago
  And you think Jason who-the-fuck-cares-about-what-he-thinks Calacanis somehow has a meaningful role in a scare campaign? He was just one of the scared people. And guess what, the FDIC and the administration actually do believe there was a clear risk of regional banks going under. That's literally the topic of the article you're commenting under. I feel this solution is too strong handed and I don't think the world would have ended if there wasn't a solution tomorrow and a hundred startups would have to take a 20-30% haircut on their raised funds by selling their claims, so I don't agree with Jason, but calling him evil for his standpoint and voicing it is what's ridiculous.

duxup 4y ago

I see lots of screaming on twitter, I don't find this unusual or particularly bad. Everyone would want their money back ...

flappyeagle 4y ago

But he was right? Certainly Yellen thought so. Why is screaming on twitter such a crime? Just block him.

vkou 4y ago

> People like Jason Calcanis were screaming on Twitter like the world was going to collapse and that the contagion would take down regional banks hurting ordinary consumers. If the 18th-largest bank in the country were to be allowed to collapse, with depositors losing money due to something they had no control over, why would any non-insane depositor keep their money in the 17th, or the 19th largest bank? Any rational person will follow this line of reasoning to conclude that the only safe place to deposit your money would be a too-big-to-fail bank. And nobody wants to see that.

theGnuMe 4y ago
FDIC insures accounts to $250k. Why would any sane and rational person put more than $250k in any one account?
- duxup 4y ago
  Because you don’t want a lot of accounts?

ssnistfajen 4y ago

If SVB did fail with depositors not getting more than $250k back then it would be a contagion. I did find some VC tweets overly dramatic but the underlying messaging is still right.