4 sats \ 5 replies \ @ek 13 Mar 2023 \ on: US rolls out emergency measures after Silicon Valley Bank collapse bitcoin
Did I get this right:
They are bailing them out to ensure no contagion and help making payroll to protect innocent people, but at the same time, this also helps the people who are at fault for no proper risk management?
While at good times, the innocent people don't profit? They are basically just hostages in bad times?
Is this what is meant with "privatize the gains, socialize the losses" since the money has to come from somewhere which can be either from the tax payer or the money printer. Anyway, we lose.
Bingo
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What about
Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.
With people who are at fault we mean the VCs who put their money into that bank and are now bailed out?
But the shareholders are other people?
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I wouldn't worry too much about the details. One way or another, if not now then later, the whole thing will implode. So just GTFO of their no-fixed-rules monopoly game.
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I am already out of it and was never in it.
I just care about details.
But I think this answered my questions good enough:
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Nice... Or not nice lol
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