Silicon Valley venture capitalists are screaming for a bail out in response to the recent sudden collapse of Silicon Valley Bank — the second-largest bank failure in history, behind the collapse of Washington Mutual at the height of the 2008 financial crisis.
“YOU SHOULD BE ABSOLUTELY TERRIFIED RIGHT NOW — THAT IS THE PROPER REACTION TO A BANK RUN & CONTAGION @POTUS & @SecYellen MUST GET ON TV TOMORROW AND GUARANTEE ALL DEPOSITS UP TO $10M OR THIS WILL SPIRAL INTO CHAOS,” entrepreneur Jason Calacanis exclaimed.
YOU SHOULD BE ABSOLUTELY TERRIFIED RIGHT NOW — THAT IS THE PROPER REACTION TO A BANK RUN & CONTAGION @POTUS & @SecYellen MUST GET ON TV TOMORROW AND GUARANTEE ALL DEPOSITS UP TO $10M OR THIS WILL SPIRAL INTO CHAOS
— @jason (@Jason) March 12, 2023
Am curious if the innovation world is the only part of our economy that doesn’t deserve a depositor bailout?
And can’t help but ask how many equivalent aid packages to Ukraine (0.5 of them?) it takes to resolve the crisis impacting thousands of promising US technology companies.
— Joe Lonsdale (@JTLonsdale) March 11, 2023
To clarify – I’m opposed to bail outs, and it’s crazy that well-connected-to-DC debt-holders and even equity of banks got bailed out in 2008 (although I understood actions to protect depositors in that crisis).
SVB equity and the ~18B debt holders will likely lose all or most as… t.co/KLT4oRwNjT
— Joe Lonsdale (@JTLonsdale) March 11, 2023
There are small companies that can’t make payroll. The domino effect to employees is crushing.
— Sara Ledterman (@saraledterman) March 11, 2023
AC