You are in the top 1% and you are asking for a government bailout.
Everyone knows that amounts over $250K were not insured. These are not "innocent depositors".
A lot of my portfolio companies are affected, but I will not lobby for a government bailout on their behalf.
It's not the right thing to do.
I 100% agree with you on lobbying for an expedient process, but if these companies have to take a haircut, they have to take a haircut. The strong will survive (and learn a lesson about risk management).
> Everyone knows that amounts over $250K were not insured.
This is technically true, but I think there's a feeling that traditional banks are de-facto safe places to keep money. Depositors losing money in bank runs feels like a 1920's problem.
The lessons from 2008 were to look out for risks of an asset class failing and that packaging risky, correlated assets doesn't make them much safer. The lesson here is sudden interest rate increases can cause bank failures. This was a mostly unknown unknown.
LOL! Neither "packaging correlated assets doesn't make them magically AAA, so we'll also commit ratings fraud", neither "uninsured money at a bank can be lost in sudden market shifts (or simply mismanagement or fraud)" are/were unknowns. These people took risks KNOWINGLY, because they were rewarded handsomely by it. Now and then it rears its ugly face and we're supposed to pay the check? Give me a break.
I'm struggling to understand how taking the risk of "uninsured money at a bank can be lost in sudden market shifts" can reward one handsomely. Is there some way I can make spectacular gains by depositing money in a mismanaged bank?
Everyone knows that amounts over $250K were not insured. These are not "innocent depositors".
A lot of my portfolio companies are affected, but I will not lobby for a government bailout on their behalf.
It's not the right thing to do.
I 100% agree with you on lobbying for an expedient process, but if these companies have to take a haircut, they have to take a haircut. The strong will survive (and learn a lesson about risk management).