“Big Business bailouts, camouflaged by doomsaying about bank runs, couching the problem as "Mom and Pop in the streets," asserting the economy itself will fall off the cliff, “systemic risk,” a litany of other emotional ploys, and above all a trite and jollow “this time only” assertion, are cronyism at its worst. That there’s a long history putting the lie to “this time only” declarations doesn’t seem to faze them. Need I remind you of the bank bailouts of 2008-09, the concurrent auto industry bailout, the airline industry bailouts in 2001 and 2020, the Savings and Loan bailout of 1989, Chrysler in 1980, Franklin National Bank in 1974, Lockheed in 1971, or Penn Central Railroad in 1970? Every time, we were told the risk of not bailing them out was too great.“
Set aside for the moment the perception that SVB depositors were arrogant, high-flying tech start-ups.
Any legitimate business needs a bank account to conduct routine transactions, such as paying employees and suppliers, and even a small to medium sized company may need to maintain more than $250K on hand. There are a lot of risks and problems to deal with when running a business, but I'd bet that the security of what amounts to a giant checking account is considered "routine" and not on the radar of most managers.
Well said!
“Big Business bailouts, camouflaged by doomsaying about bank runs, couching the problem as "Mom and Pop in the streets," asserting the economy itself will fall off the cliff, “systemic risk,” a litany of other emotional ploys, and above all a trite and jollow “this time only” assertion, are cronyism at its worst. That there’s a long history putting the lie to “this time only” declarations doesn’t seem to faze them. Need I remind you of the bank bailouts of 2008-09, the concurrent auto industry bailout, the airline industry bailouts in 2001 and 2020, the Savings and Loan bailout of 1989, Chrysler in 1980, Franklin National Bank in 1974, Lockheed in 1971, or Penn Central Railroad in 1970? Every time, we were told the risk of not bailing them out was too great.“
It's another step towards peak corruption. We need a doomsday clock that counts down to Banana Republic Status
Set aside for the moment the perception that SVB depositors were arrogant, high-flying tech start-ups.
Any legitimate business needs a bank account to conduct routine transactions, such as paying employees and suppliers, and even a small to medium sized company may need to maintain more than $250K on hand. There are a lot of risks and problems to deal with when running a business, but I'd bet that the security of what amounts to a giant checking account is considered "routine" and not on the radar of most managers.
True, but does that justify what the government did?
I'd also argue that having half a billion in cash in an account *deserves* a manager that would be alert to the health of the institution.