One day someone may come on this message board and say:
Perhaps you are too young to remember what life was like before SVB failed? Before banks were made to be more responsible with depositor money so people wouldn't be hurt, and before the sociopathic fake-libertarian culture of Silicon Valley elites was finally dead and buried along with a few of their Tahoe cabins and a couple companies that advanced innovation by tricking people into ordering food from existing restaurants on fake websites?
I remember, they will say, how there was a bank that was so dominated by cronyism and collusion that they were forcing companies all from one very narrow sector to keep large uninsured balances in one bank while they bet all that money on long-dated securities for some inexplicable reason.
Remember how the bank got people to go along with this insane plan by giving the people with fiduciary responsibility for these company treasury decisions mortgages, even when the banking market in general had deemed them too high risk?
Wow that was crazy. Anyways they died. This is the nature of disruption. Entrepreneurs have a negative experience with an entrenched crony-driven legacy industry, have a lightbulb moment, and then build banks that don't do shit like that.
So the quaint pastoral notion of the innocent startups and VC podcast hosts being obliterated by the terrible negligent actions of the government is just wrong. They knew they were mispricing risk and they just didn't fix it. Even after their bank failed they sought -- are still seeking? -- to defend the status quo rather than realize a justified loss and create a better and safer banking experience.
I look forward to reading these comments in the future.
Just for reference I've been building on the web since about 1994. It's a lovely perspective that makes it much easier to realize just how fundamentally full of shit all these guys are on this topic today.
> advanced innovation by tricking people into ordering food from existing restaurants on fake websites?
Just want to point out that what you are describing is called a "ghost kitchen", and it’s a bizarre and terrible idea that never made any sense in the restaurant environment, because the existing storefront could barely keep up with the original orders, let alone having to use a separate menu with different ingredients and preparation style to keep pace with to-go orders. Whoever it was that came up with this idea really needs to take a step back and see how disastrous the idea has been for retail food establishments.
Perhaps you are too young to remember what life was like before SVB failed? Before banks were made to be more responsible with depositor money so people wouldn't be hurt, and before the sociopathic fake-libertarian culture of Silicon Valley elites was finally dead and buried along with a few of their Tahoe cabins and a couple companies that advanced innovation by tricking people into ordering food from existing restaurants on fake websites?
I remember, they will say, how there was a bank that was so dominated by cronyism and collusion that they were forcing companies all from one very narrow sector to keep large uninsured balances in one bank while they bet all that money on long-dated securities for some inexplicable reason.
Remember how the bank got people to go along with this insane plan by giving the people with fiduciary responsibility for these company treasury decisions mortgages, even when the banking market in general had deemed them too high risk?
Wow that was crazy. Anyways they died. This is the nature of disruption. Entrepreneurs have a negative experience with an entrenched crony-driven legacy industry, have a lightbulb moment, and then build banks that don't do shit like that.
So the quaint pastoral notion of the innocent startups and VC podcast hosts being obliterated by the terrible negligent actions of the government is just wrong. They knew they were mispricing risk and they just didn't fix it. Even after their bank failed they sought -- are still seeking? -- to defend the status quo rather than realize a justified loss and create a better and safer banking experience.
I look forward to reading these comments in the future.
Just for reference I've been building on the web since about 1994. It's a lovely perspective that makes it much easier to realize just how fundamentally full of shit all these guys are on this topic today.