Disclosure: I’m directly or indirectly involved with several firms who had/have funds at SVB. None are impaired, or facing liquidity issues due to failure.
It doesn't matter, really none it matters, the government will bail them out. If we learned anything over the past 20-30 years is that IF you are big enough and connected enough, the rules that small business have to play by do not apply to you.
Privatize the profits, and socialize the losses. It's a helluva business plan if you can swing it.
Ag accounts for about 1.5% of CA economy. Even if it were to double, it wouldn’t overcome coming declines in the financial and real estate sectors that comprise close to 20% of the state’s economy.
California has a narrow state income tax base. A mere 500,000 taxpayers comprise half of the state's income tax revenue. Silicon Valley and stock values make up a large fraction of income of this 500,000.
The state can’t continue to rely on the tax revenues generated by tech, media and ever-rising property prices. But there are ways to turn painful realities to California’s advantage.
It doesn't matter, really none it matters, the government will bail them out. If we learned anything over the past 20-30 years is that IF you are big enough and connected enough, the rules that small business have to play by do not apply to you.
Privatize the profits, and socialize the losses. It's a helluva business plan if you can swing it.
the bank was not bailed out. Its stock went to zero and all its assets were taken over.
Not bailed out.
but they did bail out all of those who didn't take the FDIC $250K insurance seriously
imagine you're insured for 100k/300k/100k on your vehicle, but then you get an accident and the insurance firm agrees to pay out $100 million
government needs to remove the $250K insurance bs and just say everything is guaranteed to infinity since that is their actual stance
These things are treated as one off isolated cases until more than one bank failure per month.
* Nick Leeson, Bank of England, circa 1992.
* Orange County, CA bankruptcy, circa 1994.
* Long Term Capital Management, circa, 1998.
Over 99% of you did not know it real time, but almost all the large N.Y.S.E. investment firms were firing more men & women than they were hiring from 2nd or 3rd quarter, 2005. [Ignore what they say. Watch what they do!]
If I recall, Bear Sterns was the last one everyone in charge in government and their media partners were able to say, Just a one off.
I’m eager learn from your expertise in this area because I was under the impression that the Fed is an independent agency operating under the supervision of Congress. But isn’t it true that woke President Trump appointed the current woke Fed chairman Jerome Powell? So confusing.
This post was edited 1 minute after it was posted.
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It doesn't matter, really none it matters, the government will bail them out. If we learned anything over the past 20-30 years is that IF you are big enough and connected enough, the rules that small business have to play by do not apply to you.
Privatize the profits, and socialize the losses. It's a helluva business plan if you can swing it.
the bank was not bailed out. Its stock went to zero and all its assets were taken over.
Not bailed out.
Not yet. But none of them will lose anything. They'll be taken care of. Assuming they donated to the "right" people.
the bank was not bailed out. Its stock went to zero and all its assets were taken over.
Not bailed out.
but they did bail out all of those who didn't take the FDIC $250K insurance seriously
imagine you're insured for 100k/300k/100k on your vehicle, but then you get an accident and the insurance firm agrees to pay out $100 million
government needs to remove the $250K insurance bs and just say everything is guaranteed to infinity since that is their actual stance
They'll never outright say "everything is insured," even though that's what they're doing in practice. This would change how the FDIC works and their current stance gives them more flexibility. I'm not convinced that they would bail out depositors in a bank that doesn't have a ton of connections to VCs/rich people.