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?
Show threadmarkMar 15, 2023

@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 threadvy
@tprophet @clsytim @ATLeagle That's also not true. The FDIC insures accounts up to $250K, but it tries to pay all depositors, usually by seizing bank assets. None of this is new or hard to look up.
Mar 16, 2023 at 2:47amWeb