I don't understand. You think the depositors should be punished for...trusting SVB? Do you expect every startup to run their own little hedge fund to manage their cash?
The argument that the system should punish people for not risk averse enough to protect themselves against bank failures is like saying that languages with type checking are bad because they make soft programmers who can't protect themselves, even though the safer system is easier to use, and allows its users to focus on different, more important/business relevant problems.
Yes.
> Do you expect every startup to run their own little hedge fund to manage their cash?
I expect them not to trust banks.
Those are not the countries Americans are flocking to for good reason.
That's how it is with everything. If a farmer plants some crops but it drops in price to the point it's completely unprofitable, is he being punished for growing food? Does the government bail him out?
Yes
It is the most basic of business tenets to do risk assessment on strategic company decisions to reduce exposure to risk
I am sorry you are offended by the fact that I look down on you for your lack of business competence. I used to expect better of people managing hundreds of millions of usd in capital, but I guess not
It is due time for Silicon Valley to face some financial discipline
This is such a weird thing to say, you know that right? I wasn't even talking to you.
Don’t startups already follow the standard model of whatever the VCs say is the right way to do it? As in—there’s a tremendous amount of cargo culting, no? Or perhaps that the banks specifically require an exclusive deal. In either case, not an unsolvable problem.
It's funny how all these techies cant apply their own best development principles (e.g use sensible defaults) to real life.
IYI