[yterdy]

I maintain that you're privileging the economic wellbeing of privileged tech workers, who have the resources to weather unemployment (and their communities and municipalities who are likewise situated, recognizing the effect of this mass layoff), over the workers that this bailout is now going to effect. There's a multi-hundred-billion-dollar hole in the Treasury balance sheet which is now, ultimately, going to be filled with SNAP cuts, and job skill development cuts, and public transit cuts, and cuts to all the other low-hanging discretionary fruit that help keep life in the bottom two quintiles of the American wealth ladder viable. They get hurt, because the people at the top are incompetent.

I've said (roughly) in another thread, I would rather have well-off people get hurt alone or alongside poor people, rather than poor people alone. When well-off people get hurt, problems are more likely to get fixed. What we've seen is proof positive of the assumption of influence and reach that underpins this notion, but in the most cynical way imaginable. They said: fuck you, got mine.

[colinmorelli]

If you think this created a multi hundred billion dollar hole, then I’m not sure you’re following what actually happened here.

SVB had assets to cover most deposits, if not all. FDIC needs time to sell those assets, but depositors need the security of their cash now. FDIC pledged a larger portion of their pool, which is funded by banks, to cover withdrawals while assets are sold.

By most reasonable estimates, FDIC will recover at least 80-90% of deposits at no cost to anyone. This means that, at most, there’s a 10-20B hole to plug, if any at all. If needed at all, that hole will be plugged by a special assessment on other banks. Given the relatively small dollar amount, it’s my personal opinion that banks wouldn’t bother trying to pass down the fee, be that’s the primary way this would impact regular people.