4 ms·

You can spin "what this is about" whatever way you want, but it's simply a fact that for the kind of businesses that typically had deposits at SVB, the overwhel

by brazzy 4y ago

You can spin "what this is about" whatever way you want, but it's simply a fact that for the kind of businesses that typically had deposits at SVB, the overwhelming part of those deposits existed to pay employee's salaries.

watwut 4y ago
Yep. And when other business can not pay salaries because of events they could not control, neither them nor their employees get any extra help. They get mockery from very same people that call for help now. This is about who got it. The startups did not had all of their money in this particular bank randomly. It was by design.
- sokoloff 4y ago
  What was the PPP “loan” program if not a direct example of what you claim doesn’t exist?
  - hellojesus 4y ago
    A corrupt program that incentivized banks to finance the largest sums first, which of course were only demanded by the largest companies, and ended up running out of funds by the time the small players got their turn in line. It was a sad attempt at preventing a 5th Ammendment violation, and it was done so poorly that it didn't solve the issue. The 5th was still violated.
- creato 4y ago
  > And when other business can not pay salaries because of events they could not control Can you give an example of such a company? I can’t think of a way in which an otherwise healthy (long term viable) company could suddenly be unable to make payroll in such a way that assistance would not be available (e.g. inexpensive bridge loan), or the company should not have bought relevant insurance. Literally the only thing I can think of is if smaller banks failed and companies were stuck with 250k + haircuts and didn’t get this same deal. So did that actually happen?
  - subsistence234 4y ago
    I'm a fan of startups, but seriously... wtf? how are startups "healthy companies"?
    - creato 4y ago
      Im not talking about startups, read the post I replied to again. And even in the case of a startup, their runway is probably longer than next payroll.

by brazzy 4y ago

watwut 4y ago

Yep. And when other business can not pay salaries because of events they could not control, neither them nor their employees get any extra help. They get mockery from very same people that call for help now. This is about who got it. The startups did not had all of their money in this particular bank randomly. It was by design.

sokoloff 4y ago
What was the PPP “loan” program if not a direct example of what you claim doesn’t exist?
- hellojesus 4y ago
  A corrupt program that incentivized banks to finance the largest sums first, which of course were only demanded by the largest companies, and ended up running out of funds by the time the small players got their turn in line. It was a sad attempt at preventing a 5th Ammendment violation, and it was done so poorly that it didn't solve the issue. The 5th was still violated.
creato 4y ago
> And when other business can not pay salaries because of events they could not control Can you give an example of such a company? I can’t think of a way in which an otherwise healthy (long term viable) company could suddenly be unable to make payroll in such a way that assistance would not be available (e.g. inexpensive bridge loan), or the company should not have bought relevant insurance. Literally the only thing I can think of is if smaller banks failed and companies were stuck with 250k + haircuts and didn’t get this same deal. So did that actually happen?
- subsistence234 4y ago
  I'm a fan of startups, but seriously... wtf? how are startups "healthy companies"?
  - creato 4y ago
    Im not talking about startups, read the post I replied to again. And even in the case of a startup, their runway is probably longer than next payroll.