Are you actually arguing that SVB and their depositors haven't seen immense profits in the past few decades? 250k is FDIC insured. Beyond that, a massive haircut is the only fair solution.
They made a bet on 10-year government bonds. It didn't work out due to rising interest rates. Whoops? Not my fucking problem. Unless they get their way and make us all pay for it.
Edit: This account is shadow-banned. I can't directly respond to the comment below. Luckily for me, I already thoroughly explained my point. This has nothing to do with "bankers" and everything to do with unbelievable hypocrisy from the SV founder & investor class. You all are so fucking full of shit. Flag this comment, please. After being totally swindled in 2008, I predict Americans are going to react to this rationally, which will be very bad for you. Good luck assholes.
But the people you're suggesting should take a haircut (the depositors) did not make a bet on 10-year government bonds. They just put their money in a well-reputed bank. Why would they take a haircut? Wipe out SVB equity holders, sure, but depositors did nothing wrong here.
Also, you're probably not shadowbanned, sometimes there's just a delay before you can respond to a comment responding to yours. No need to name call.
They're neither good nor bad. They're just assets. Investors who bought them should bear the consequences of their decision. Depositors knew that their deposits were not insured in excess of 250K. Why do we allow certain groups of people to just rewrite the rules whenever they fail? It's ridiculous. Not to mention totally antithetical to their supposed philosophy.
The answer to your question is pretty simple, actually; the "we" would would let SVB depositors fail are also the same "we" that compose the voters and participants in the US economy who would be harmed by letting SVB depositors lose out on their money.
Allowing people to starve and die isn't really in the best interest of the very people who would starve and die, so... "we" won't let that happen.
I'm not saying we allow them to starve and die. They can apply for SNAP, EBT, and Medicaid, just like everybody else if they become truly penniless. Get a job delivering Jimmy Johns. Or just sell their vacation homes.
They made a bet on 10-year government bonds. It didn't work out due to rising interest rates. Whoops? Not my fucking problem. Unless they get their way and make us all pay for it.
Edit: This account is shadow-banned. I can't directly respond to the comment below. Luckily for me, I already thoroughly explained my point. This has nothing to do with "bankers" and everything to do with unbelievable hypocrisy from the SV founder & investor class. You all are so fucking full of shit. Flag this comment, please. After being totally swindled in 2008, I predict Americans are going to react to this rationally, which will be very bad for you. Good luck assholes.