Re:Ask HN: What do you think of YC asking for SVB depositors...
by PaulHoule on Sunday March 12, 2023 @09:35AM
(#35119878)
A lot depends on how bad the situation is, that is, how big the financial hole is.
The Fed is very sensitive to the concern of economic and operational disruption and they’d like to restore as much as they can as soon as they can, it might be relatively easy to do, it might not.
The bear case I see is that the SVB failure wrecks the companies that have loans to it, so it is a self-fulfilling prophecy which could turn a somewhat bad situation into an unmitigated disaster.
The Fed is very sensitive to the concern of economic and operational disruption and they’d like to restore as much as they can as soon as they can, it might be relatively easy to do, it might not.
The bear case I see is that the SVB failure wrecks the companies that have loans to it, so it is a self-fulfilling prophecy which could turn a somewhat bad situation into an unmitigated disaster.