muzz

9 ms·

91.
by muzz 4y ago
Indeed, VCs bridge startups all the time. There are other mechanisms available also-- hedge funds are willing to pay 80 cents on the dollar for these deposits (indicating that they expect to recover more than that)
92.
by muzz 4y ago
Many people would would support this, however what's being proposed is a pure money grab of taxpayers money
93.
by muzz 4y ago
Short-term rates were near 0, but Long-term rates were 1.x%, which doesn't sound like much but keep in mind they bought tens of billions of dollars of these bonds. That 1.x% on that huge amount would be over $1 Billion per year. It&#x2
94.
by muzz 4y ago
It absolutely IS burdening the taxpayer-- he just doesn't want to say it "Regulatory backstop" sounds a lot better than "tax grandma to make sure out portfolio companies don't lose a penny of their deposits on this&
95.
by muzz 4y ago
Is your goal to eliminate risk, or to mitigate it? If they had deposited that 3B in, say two banks rather than one, they'd have 1.5B in that other bank
96.
by muzz 4y ago
The wording "small business" draws more favor than "Silicon Valley tech startup"
97.
by muzz 4y ago
There is ZERO contrition in any of their communications. Their messages are "we are special because we are the job creators" and "it will end up hurting small guys more" and other forms of self-gratification and bullyin
98.
by muzz 4y ago
And compensated them handsomely for that service. If only we had done that...
99.
by muzz 4y ago
Because absolute greed. Note the complete lack of ANY contrition, accountability, etc in their communications on this.
100.
by muzz 4y ago
Someone should start a petition for letting the market work and having its participants be accountable for their decisions.
101.
by muzz 4y ago
If hedge funds are willing to pay up to 80 cents on the dollar, it implies they think they'll be able to recover more than that.
102.
by muzz 4y ago
Ultimately probably not much at all. You'll have to tolerate scare-mongering for the next few days, at least until Monday. Much of it appears to be to promote the idea of a government bailout, which (I hope) has little chance of occurr
103.
by muzz 4y ago
I don't doubt your claim, but in retrospect that was the best time to join a startup
104.
by muzz 4y ago
I wonder if he even realizes what much of the rest of America _already_ thinks of Silicon Valley, and how much more he damaged the perception of SV / YC by basically asking for a government bailout while the ink was still wet and befor
105.
by muzz 4y ago
Sacks was playing the role of crisis actor so perfectly. He, Tan, and others really learned Rahm Emanuel's advice of "never let a crisis go to waste"
106.
by muzz 4y ago
These are Chicken Little scare tactics, and it is disappointing he chose that. I wonder how much of YC's reputation was destroyed yesterday by this self-serving attempt. It is unlikely that these companies won't have access to eno
107.
by muzz 4y ago
Depends if you think the eventual outcome is worth more. People used to second-mortgage their house to start small businesses where the best-case payoff is much less than these tech companies-- some of which are apparently the next Google
108.
by muzz 4y ago
He's asking for a government bailout, so looks like the cockiness has only _increased_
109.
by muzz 4y ago
He's using scare tactics to try to get a taxpayer bailout
110.
by muzz 4y ago
He really lost a lot of respect from these tweets
111.
by muzz 4y ago
He's saying entrepreneurs are special-- they are the job creators, they are the Atlases of Ayn Rand, etc-- and thus deserve to be bailed out by grandma paying more in taxes
112.
by muzz 4y ago
Agreed, and he really lost a _lot_ of respect from these tweets today
113.
by muzz 4y ago
There are many ways to avoid that. Agreed with the first part, amazing how quickly Tan and Sacks turned to government for a handout. If they get one, that will only incentivize bigger problems next time.
114.
by muzz 4y ago
The depositors, creditors, employees etc. all have to be paid first. I would be surprised if they can even do that, much less have anything left over for stockholders
115.
by muzz 4y ago
This is the essence of the moral hazard created by the bank bailouts in 2008
116.
by muzz 4y ago
Tan, Sacks, etc are basically practicing "never let a crisis go to waste" They only want to rig the game in their favor. These people weren't advocating things like tougher bank regulations that would have prevented this. Th
117.
by muzz 4y ago
They made poor decisions on where to store their money. Why should they get bailed out, when every 401k retirement account that lost money in the stock market today isn't getting bailed out?
118.
by muzz 4y ago
If a company wants to shoot itself in the foot like that
119.
by muzz 4y ago
Also, how poor the decision-making must be at all those startups in regards to where they keep their cash.
120.
by muzz 4y ago
He wants "Depositors must be made whole" by the government. Amazing how quickly capitalists turn to socialists

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