TProphetMar 15, 2023
Your periodic reminder that bailing out Silicon Valley Bank cost more than the entire US food stamp program, and happened overnight with zero debate.
Show threadTim Y.C 🌐🌍Mar 15, 2023
@tprophet but the bank wasnt bailed out, no?
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@clsytim @tprophet if you want to break down each word like a lawyer, no. If you want to describe the action of covering and restoring uninsured funds that were lost, then yes.

It's impossible to deny that a very large (to me) amount of money was conjured out of thin air, which is very surprising as we are always told that it would be an irresponsible amount of money to conjure up when normal people need it

Show threadTim Y.C 🌐🌍Mar 15, 2023
@ATLeagle @tprophet but it wasnt conjured from thin air. It was taken from the FDIC insurance that all Federally insured banks put money into like other insurance programs. Maybe Im missing something, were there funds taken from other sources?
Show threadTProphetMar 15, 2023
@clsytim @ATLeagle Yes, it was taken from an insurance trust fund that is only supposed to cover up to $250k, unless it's a VC's large uninsured bank account (or that of one of their portfolio companies).
Show threadTim Y.C 🌐🌍Mar 15, 2023
@tprophet @ATLeagle Do we know the extra funds came from the FDIC and not the liquidation of the bank? I'm actually not certain I ever saw the breakdown.
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@clsytim @tprophet I see it as I have insured my home to a certain amount. If I actually needed 10x that, then even if my insurance company had assets that COULD cover me, they wouldn't, because I hadn't actually insured correctly. These companies could have done this, chose not to, yet were made whole.

The same people yelling that everyone else needs to own their mistakes and be responsible are supporting these recovery funds.

Mar 15, 2023 at 10:13pmWeb