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> The seriousness of the problem can be better understood by communicating with other involved parties including the bank, the government, investors, and client
by twblalock 4y ago
> The seriousness of the problem can be better understood by communicating with other involved parties including the bank, the government, investors, and clients.
Doing that would just give everyone else the info they need to start a run on the bank. Then they get their money out and you are left holding the bag and everyone is mad at you for not warning them.
If you know a bank is busted, and you tell other major investors, what do you think they would do? It only takes one person to freak out and the plan is ruined, and then you have your CEOs coming to you asking why the heck a board member who knew their bank was failing didn't help them get their money out.
We know that is true because when the CEO of the bank told major investors about the problem, they started a run on the bank. Do you think they would have reacted differently to the bad news if Peter Thiel had told them about it rather than the CEO of the bank?
- slg 4y agoThere needed to be an adult in the room to coordinate a response that wasn't just everyone panicking. Thiel didn't necessarily need to be that adult himself, but his panicking eliminated the opportunity for anyone else to be that adult. The problem was fundamentally that everyone acted in their own best interest instead of coordinating a response that would have been in everyone's best interest.
- twblalock 4y ago> The problem was fundamentally that everyone acted in their own best interest instead of coordinating a response that would have been in everyone's best interest. Yes, this is a well-known and unsolvable problem of human societies.
- slg 4y agoWe have solved it countless times in countless situations. What do you think the FDIC is for example?