tome

60 ms·

961.
by tome 4y ago
People seem to like brick: https://hackage.haskell.org/package/brick (I've never used it)
962.
by tome 4y ago
It changes whether depositors give banks their deposits in the first place.
963.
by tome 4y ago
Sure, and T-Bills are easy to draw on for payroll. It's basically the most liquid market in existence.
964.
by tome 4y ago
> Except people that owned T-Bills that they bought through SVB also lost access to their money. I don't think that's the case, though I may be wrong and would appreciate correction if so. Anyone who held T-Bills at SVB as a b
965.
by tome 4y ago
Hey Garry, did YC advise its startups about prudent management of their treasury? How come so many of them had more than $250k in their checking accounts? Do you think you could have advised them better?
966.
by tome 4y ago
Yes, it's a moral failure. Fiduciary duty is often poorly-remunerated and boring. If you can't tolerate that, don't become a fiduciary.
967.
by tome 4y ago
I suppose it's possible that they don't want people to learn it, but if that's really true then the western banking system is in a lot more trouble than I even thought. The idea that learning a basic truth should completely
968.
by tome 4y ago
Or just put into T-Bills, which private individuals can do from their phones.
969.
by tome 4y ago
Is it? Why?
970.
by tome 4y ago
> why would any bank practice proper risk management after this? The incentive for depositholders to exercise oversight has been removed, but the incentive for shareholders seems strong now!
971.
by tome 4y ago
That's a complete misunderstanding of JIT. If SVB were running according to JIT principles it would have matched the duration of liabilities (deposits) to the duration of assets (the bonds it held). In fact it held long-dated bonds,
972.
by tome 4y ago
Yup, I think this is the most accurate one-minute assessment of the whole debacle.
973.
by tome 4y ago
Yes, there's a lot of sleight of hand going on here. This is also highly suspcious: > Finally, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assu
974.
by tome 4y ago
But more affected than they would be if depositors finally learned the lesson that bank deposits are not risk free.
975.
by tome 4y ago
Why not? Some private individuals with $10k to invest by treasuries.
976.
by tome 4y ago
If I put at risk the financial stability of the United States, then yes.
977.
by tome 4y ago
Yes, that makes sense. Perhaps I was too cynical.
978.
by tome 4y ago
Yup
979.
by tome 4y ago
Oh, when I say "bail out" I mean bail out of depositors with more than $250k of deposits, less than $250k already being well-understood to be covered. You, as a single depositor of $250k are fine. If you have $1m then you spread
980.
by tome 4y ago
That thread seems to be insinuating that startup executives were offered mortgages in return for keeping their treasury as deposits in SVB. If so that sounds like a massive violation of fiduciary duty. (I don't have any concrete evid
981.
by tome 4y ago
> doesn't does distract us "doesn't just " perhaps?
982.
by tome 4y ago
The problem is that continuing to bail out depositors means that they'll never do due diligence on their banks and therefore bank executives will keep trying risky strategies that increase their bonuses.
983.
by tome 4y ago
> I don't understand. The current labour shortage is, 100%, hands down, fully stop, start to finish, a result of boomers retiring. What I'd love to know is why this labour shortage doesn't lead to increased wages for the w
984.
by tome 4y ago
Yeah, this seems to be what I'm learning from https://twitter.com/WallStCynic/status/1634901599423197191 Perhaps some near-fraudulent collusion between SVB, VCs and the executives of the banked startups then
985.
by tome 4y ago
Yeah, that's my misuse of the term "deposit" where I meant something like "total reserve amount".
986.
by tome 4y ago
Yes, I understand that. But I don't understand why we couldn't have a system whereby, to cover payroll, a bank creates a loan to each company every payroll day, transfers cash to the (FDIC insured) bank accounts of employees, and
987.
by tome 4y ago
Per banking group - a dangerous distinction! If you have 80k GBP in each of Bank of Scotland, Halifax and Lloyds Bank then you have 160k GBP at risk!
988.
by tome 4y ago
Thanks, I think there's something faulty in my understanding of terminology. By "deposits" I was understanding "deposits backed by holdings at the central bank". The original question I was trying to answer was &qu
989.
by tome 4y ago
> If the fraction was to stay constant deposits would increase as fast as loans. In relative terms yes, in absolute terms, they'd be lower. > the problem of the US banking system in the last years has been that deposits have been
990.
by tome 4y ago
Yes, you have convincing points. I guess I just don't like the way most of SV works.

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