[ummonk]

There are political forces on both the left and the right against bailing out depositors because the startup industry is hated. We need to protect our industry from further damage, including by being ahead of bank runs on other banks. If that results in triggering those bank runs, so be it.

[flangola7]

Startup industry is bad, why should we protect it? There's very few things awful enough to attract bipartisan hate.

[ummonk]

Drives economic growth, creates jobs, and increases labor market competition amongst employers which leads to higher wages.

The latter function is particularly salient for tech people (which many of us who follow HN are).

[flangola7]

A heap of parroted buzzwords is not very convincing.

[SkyMarshal]

Neither is evidence-less overly-general assertions like “startup industry bad”.

[swsieber]

Here's (admittedly weak) evidence: calling for actions that lead to bank runs.

It's hard to take defense of startups seriously where startups are blatantly going to screw others over for their own sake. Do I get it? Yes. But it's more than me vs them; they made it an "us" vs them.

[ummonk]

The "them" in this case are those who gleefully point out that only 250k is insured by the FDIC and any startup that deposited more than that was engaging in risky behavior and deserves to lose their money.

In such a situation, you can't cry foul on those seeking to move their money into safer banks, even if doing so precipitates a bank run.

[flangola7]

But I'm not trying to be convinced of that; that fact is self-evident.

[SkyMarshal]

No it isn't.

[swsieber]

Mmm... like strong encryption? Plenty of good things get bipartisan hate.