There’s serious talk about bailing out depositors at Silicon Valley Bank and leaving American taxpayers on the hook. Once again, the American system is privatizing gains and socializing losses for the most powerful.
VC’s chose to ignore the risks inherent in the system. Perhaps the precise way this is playing out wasn’t entirely predictable, but a system based on leverage and debt is bound to fail one way or the other. Each bailout will only increase in size, allowing the most powerful to up the leverage. If depositors get away it through bailouts, the powerful will never learn.
But, how will they learn this important lesson?
The only way they will learn is through pain.
Pain is the best teacher.
thingtank
npub1nm…7tpd5
2023-03-11 17:02:04
Author Public Key
npub1nmum2ht6uqg9flwm73cu3analq2h3xk493yj2hmzfl5nlhtr0jyqf7tpd5Published at
2023-03-11 17:02:04Event JSON
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"content": "There’s serious talk about bailing out depositors at Silicon Valley Bank and leaving American taxpayers on the hook. Once again, the American system is privatizing gains and socializing losses for the most powerful. \n\nVC’s chose to ignore the risks inherent in the system. Perhaps the precise way this is playing out wasn’t entirely predictable, but a system based on leverage and debt is bound to fail one way or the other. Each bailout will only increase in size, allowing the most powerful to up the leverage. If depositors get away it through bailouts, the powerful will never learn. \n\nBut, how will they learn this important lesson? \n\nThe only way they will learn is through pain. \n\nPain is the best teacher.",
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}