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Yelling fire when there is in fact a fire is not a crime. What is this?
by s1gnp0st 4y ago
Yelling fire when there is in fact a fire is not a crime. What is this?
- gnicholas 4y agoWhat about forcefully yelling fire inches away from a minuscule fire, thus literally fanning the flames and putting it on the path to becoming a bonfire?
- JamesBarney 4y agoBank runs are self-fulfilling prophecies. So it's not a crime, but it very possibly could be the cause.
- bequanna 4y agoSVB was screwed. They bought at the tippy-top of the bond market and didn’t bother to hedge interest rate risk. The unreported losses were huge. It was just a matter of time before they bled deposits, were forced to sell and mark to market. Eventually people would notice and a panic bank run would happen. This actually could have occurred as early as Jan when others started to discuss the problems and predicted the bank failure.
- onlyrealcuzzo 4y agoThis seems more like blowing on a tiny ember and yelling fire at the same time.
- throitallaway 4y agoJust like Zhao blew on a tiny ember at FTX.
- onlyrealcuzzo 4y agoNo. Nice try. Cute. But not at all. 1) FTX held assets, not deposits that are understood to be fractional reserve. 2) FTX used the majority of those assets to buy bullshit. 3) The bullshit dropped in value by 80% (before Zhao yelled fire). 4) Everyone who gave FTX any money lost almost everything, on top of the equity investors getting wiped out completely. 5) SVB had something like 20% of assets held in long-term treasuries that "only" lost 25% of value - in a world where it's understood this is how things work and there's regulations in place and, even still, no depositor is losing money...