Anonymous
03/10/2023 19:02
Subject: Market Crash
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:SVB is not just a west coast problem. I’ve worked with 10 tech companies in the DC region and all use SVB. This is going to be detrimental to so many that don’t get a paycheck next week.
It will clear out unsustainable businesses. Thin the herd.
DP: A lot of these are great sustainable businesses--you need to have a lot of cashflow for a start-up. The problem is with the bank, not the quality or payback of loans.
What is the problem with the bank? That they didn’t hedge their treasury investment and had to take 1% loss? It is not a big deal, they must be holding 10% reserves for that. But if the heard panics there is no stopping it.
20% loss on treasury holdings.
Anonymous
03/10/2023 18:42
Subject: Market Crash
Anonymous wrote:Anonymous wrote:Biden’s donors are NOT losing money here.
All deposits will be backed “to prevent contagion.”
Or, y’know, they’re backed because that’s what the FDIC is for.
Actually that’s not what FDIC is for.
Anonymous
03/10/2023 18:34
Subject: Market Crash
Anonymous wrote:Anonymous wrote:Anonymous wrote:SVB is not just a west coast problem. I’ve worked with 10 tech companies in the DC region and all use SVB. This is going to be detrimental to so many that don’t get a paycheck next week.
It will clear out unsustainable businesses. Thin the herd.
DP: A lot of these are great sustainable businesses--you need to have a lot of cashflow for a start-up. The problem is with the bank, not the quality or payback of loans.
What is the problem with the bank? That they didn’t hedge their treasury investment and had to take 1% loss? It is not a big deal, they must be holding 10% reserves for that. But if the heard panics there is no stopping it.
Anonymous
03/10/2023 18:27
Subject: Market Crash
Anonymous wrote:Biden’s donors are NOT losing money here.
All deposits will be backed “to prevent contagion.”
Or, y’know, they’re backed because that’s what the FDIC is for.
Anonymous
03/10/2023 18:21
Subject: Market Crash
Biden’s donors are NOT losing money here.
All deposits will be backed “to prevent contagion.”
All deposits will be backed “to prevent contagion.”
Anonymous
03/10/2023 15:41
Subject: Market Crash
Anonymous wrote:Anonymous wrote:SVB is not just a west coast problem. I’ve worked with 10 tech companies in the DC region and all use SVB. This is going to be detrimental to so many that don’t get a paycheck next week.
It will clear out unsustainable businesses. Thin the herd.
DP: A lot of these are great sustainable businesses--you need to have a lot of cashflow for a start-up. The problem is with the bank, not the quality or payback of loans.
Anonymous
03/10/2023 14:44
Subject: Market Crash
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:SVB is not just a west coast problem. I’ve worked with 10 tech companies in the DC region and all use SVB. This is going to be detrimental to so many that don’t get a paycheck next week.
It will clear out unsustainable businesses. Thin the herd.
I mean, FDIC took over the bank. Funds shouldn’t be inaccessible unless accounts were above FDIC limits, which is the account holder’s fault.
Do most multi-million businesses spread their accounts across dozens to hundreds of banks to stay below FDIC limits?
PP obviously has never thought through the cash flow realities of running a business with employees.
Anonymous
03/10/2023 14:42
Subject: Market Crash
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:SVB is not just a west coast problem. I’ve worked with 10 tech companies in the DC region and all use SVB. This is going to be detrimental to so many that don’t get a paycheck next week.
It will clear out unsustainable businesses. Thin the herd.
I mean, FDIC took over the bank. Funds shouldn’t be inaccessible unless accounts were above FDIC limits, which is the account holder’s fault.
Do most multi-million businesses spread their accounts across dozens to hundreds of banks to stay below FDIC limits?
There are deposit custody services that will do this for you. They'll even seek out highest yielding banks and shift around.
Anonymous
03/10/2023 14:30
Subject: Market Crash
Anonymous wrote:Anonymous wrote:Anonymous wrote:SVB is not just a west coast problem. I’ve worked with 10 tech companies in the DC region and all use SVB. This is going to be detrimental to so many that don’t get a paycheck next week.
It will clear out unsustainable businesses. Thin the herd.
I mean, FDIC took over the bank. Funds shouldn’t be inaccessible unless accounts were above FDIC limits, which is the account holder’s fault.
Do most multi-million businesses spread their accounts across dozens to hundreds of banks to stay below FDIC limits?
Anonymous
03/10/2023 14:29
Subject: Market Crash
Time for all those startups to crack open “Lean Startup” and stretch $250k for a while.
Anonymous
03/10/2023 14:27
Subject: Re:Market Crash
Anonymous wrote:Wait, what's that? Over there. Is it a black swan?!
It aint a black swan if it just happened on a massive scale 12 years ago.
Anonymous
03/10/2023 14:23
Subject: Re:Market Crash
Wait, what's that? Over there. Is it a black swan?!
Anonymous
03/10/2023 14:08
Subject: Market Crash
Anonymous wrote:Anonymous wrote:SVB is not just a west coast problem. I’ve worked with 10 tech companies in the DC region and all use SVB. This is going to be detrimental to so many that don’t get a paycheck next week.
It will clear out unsustainable businesses. Thin the herd.
I mean, FDIC took over the bank. Funds shouldn’t be inaccessible unless accounts were above FDIC limits, which is the account holder’s fault.
Anonymous
03/10/2023 13:43
Subject: Market Crash
Anonymous wrote:SVB is not just a west coast problem. I’ve worked with 10 tech companies in the DC region and all use SVB. This is going to be detrimental to so many that don’t get a paycheck next week.
It will clear out unsustainable businesses. Thin the herd.
Anonymous
03/10/2023 13:35
Subject: Market Crash