Thread regarding Wells Fargo & Co. layoffs

Silicon Bank

Runs on banks are nothing unusual, study the Great Depression, Great Recession, etc.

When depositors and investors lose confidence, runs happen. They want their deposits out and if you don't have liquidity as a bank to pay them out, you're F'ed! As a bank, putting all your eggs in one industry basket (i.e. Tech) and not diversifying your customer base and source(s) of funding, puts you at risk of a liquidity crisis. Banks fail. Only the strongest ones survive. It's called free market capitalism. Lots of people think tech as well as crypto (read up on Silvergate Bank) is se-y. I'm against bailouts, period.

The best banks are boring, diversified, rely on multiple sources of funding, have strong core deposits, diversify across industries, and stay away from fads like Cryto and only serving tech startups who have never learned how to make a nickel of profit.

Capitalism, folks.

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Post ID: @OP+1lAOAYey

9 replies (most recent on top)

Except shorting didn't exist back then. Peter Thiel encouraged the run on SVB bc he was shorting it. He's laughing his ar-e off right now.

People are lemmings. Just like those doing a run on First Republic now. Embarrassing how many don't understand $250K FDIC coverage rules, and simply open separate accts.

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Post ID: @1zwe+1lAOAYey

Epitome of cake eating.

Response to SVB meltdown proves it's the ol' capitalism for the working class and socialism for the rich.

The rich want their profits taxed at lowest rate and their losses paid for by the govt. (the "people") i.e., The rich want privatized profits and socialized losses!

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Post ID: @1oft+1lAOAYey

Will hire h1b instead of egomaniac millennials

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Post ID: @vvr+1lAOAYey

Saturdays really bring out the boomer cranks

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Post ID: @dkf+1lAOAYey

It is funny ! SVB was let down by Silicon Valley. They did no outsourcing . India-based staff is to be blamed ?

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Post ID: @fne+1lAOAYey

Thanks, professor obvious

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Post ID: @hns+1lAOAYey

It's the old Capitalism for the working class and socialism for the rich.

The rich want their profits to be taxed at the lowest rate and they want their losses to be paid for by the government (the "people") - in other words - they want privatized profits and socialized loses!

Forget them!

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Post ID: @mfk+1lAOAYey

What is wrong with H1b? You are a low quality worker. Bill Gates said America needs H1b and we believe him not you.

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Post ID: @ofs+1lAOAYey

I agree, but capitalism also requires maximum outsourcing & h1b to India and China

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Post ID: @upa+1lAOAYey

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