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Okay well banks are not owed existence. If the banks went out of business give the deposit holders the choice of holding the underlying assets or the choice of
by anon291 4y ago
Okay well banks are not owed existence. If the banks went out of business give the deposit holders the choice of holding the underlying assets or the choice of selling them on the market.
If you held the same portfolio as the bond, you too would not be able to withdraw at full face value.
You are believing a lie if you think a ten million dollar deposit can be immediately withdrawn anywhere in its entirety.
- kevingadd 4y agoStartups were in fact able to withdraw large amounts of money from SVB. That's why it collapsed, they did this to the tune of 42 billion, and lots of the pending transfers completed.
- anon291 4y agoIn my book, having your bank fail when you withdraw large amounts of money is an equivalent statement to 'you cannot withdraw large amounts of money from your bank'.
- kevingadd 4y agoSure, but at the end of the day, a bunch of these startups withdrew large amounts of money successfully. Claims that you can't do that are simply false, at best conditionally true.
- anon291 4y agoI never claimed that some startups didn't withdraw successfully. Not sure what you're arguing about. I said > You are believing a lie if you think a ten million dollar deposit can be immediately withdrawn anywhere in its entirety. This is true, by your own admission. A bunch of startups did; some did not. Thus, it is empirically true, by your own reckoning that you cannot withdraw large deposit accounts in their entirety. To say 'you CAN do X' means that your ability to do X is not conditioned on some probability. For example, when I say I can walk, I mean I certainly can walk; not that I can walk with 20% probability.