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> Why should I be happy that the rest of us are now being volunteered to pay for insurance coverage for the group most able to understand the risk they were tak

by ericb 4y ago

> Why should I be happy that the rest of us are now being volunteered to pay for insurance coverage for the group most able to understand the risk they were taking and pay for it themselves? Because, now you don't have to worry about all the banks collapsing with run-contagion, which is a problem with large enough scale (collapsing the economy) that it does affect you. You should be happy in the way an apartment's occupants are happy when the fire department puts out a fire in a different apartment in the building, even though it "didn't affect my apartment."

cced 4y ago
> You should be happy in the way an apartment's occupants are happy when the fire department puts out a fire in a different apartment in the building, even though it "didn't affect my apartment." We're being spoon-fed the not-a-bailout rhetoric by a bunch of pyromaniacs. Your analogy would be great were it not the case that this is the nth case of arson. We put arsonists in jail for doing things that put us at risk, why are banks different? The banks mismanaged their risk and here we are looking to blame lack of regulation and the government because it let an arsonist run amuck. I see no reason why we shouldn't all open a bank, be imprudent, and ask for a bailout, citing system-risk to the financial system should we not get it.
- ericb 4y ago
  > I see no reason why we shouldn't all open a bank, be imprudent, and ask for a bailout, citing system-risk to the financial system should we not get it. How is that a good plan when you would lose the bank? The owners of SVB lost everything!
- ezfe 4y ago
  It literally can't be a bailout [of the bank] if the bank ceases to exist: >an act of giving financial assistance to a failing business or economy to save it from collapse It could be called a bailout of the banking system or of the American economy - but it's not bailing out SVB by any measure.

by ericb 4y ago

cced 4y ago

> You should be happy in the way an apartment's occupants are happy when the fire department puts out a fire in a different apartment in the building, even though it "didn't affect my apartment." We're being spoon-fed the not-a-bailout rhetoric by a bunch of pyromaniacs. Your analogy would be great were it not the case that this is the nth case of arson. We put arsonists in jail for doing things that put us at risk, why are banks different? The banks mismanaged their risk and here we are looking to blame lack of regulation and the government because it let an arsonist run amuck. I see no reason why we shouldn't all open a bank, be imprudent, and ask for a bailout, citing system-risk to the financial system should we not get it.

ericb 4y ago
> I see no reason why we shouldn't all open a bank, be imprudent, and ask for a bailout, citing system-risk to the financial system should we not get it. How is that a good plan when you would lose the bank? The owners of SVB lost everything!
ezfe 4y ago
It literally can't be a bailout [of the bank] if the bank ceases to exist: >an act of giving financial assistance to a failing business or economy to save it from collapse It could be called a bailout of the banking system or of the American economy - but it's not bailing out SVB by any measure.