unlike 2008 bailouts, SVB stockholders, bondholders, & executive stock options should be ...

kanekoa.substack.com
@KanekoaTheGreat
@DavidSacks
says unlike 2008 bailouts, SVB stockholders, bondholders, & executive stock options should be wiped out, but people & small businesses who deposited money must be protected so this contagion doesn't spread:

"Blaming the depositors in this situation is like blaming the patient in a medical malpractice situation because they didn't do a good enough job shopping for a doc..

The only reason people are stubborn about this point is because SVB has Silicon Valley in the name. If this was Farmers Bk, & it was 40,000 small business farms on the hook, everybody would understand, & the arguments being made would be we can't let 40,000 farms go out of business.

They didn't do anything wrong; they just trusted that when they put their money in a bank that it was safe, they didn't understand themselves to be making an unsecured loan to that bank. Are you kidding? They didn't engage in investment activity — they just wanted a checking account."
5:48 PM · Mar 12, 2023
·https://twitter.com/KanekoaTheGreat/status/1635034986243063808