i haven't really gotten any work done today because i'm still just flat-out stunned at SVB's receivership and how quickly it all went to hell, and how many startups and employees (including me!1) will be directly fucked over if the FDIC can't find a buyer by monday, etc
for those who have not seen it, matt levine's oops-vacation-is-cancelled column is probably the best explainer that exists: https://www.bloomberg.com/opinion/articles/2023-03-10/startup-bank-had-a-startup-bank-run
but i want you to consider for a moment the sheer hubris of silicon valley, and Silicon Valley Bank. SVB existed to provide banking services to companies that are somewhat risky for normal banks to expose themselves to: venture capital funding is high when interest rates are low, and the bank has to make money somehow, so you have to put those high deposits into low-interest bonds to have a profit. because they're getting funding from VCs, they don't want to take out loans from you (y'know, the primary way a bank makes money). and because they were the only bank that "understood" (if anyone can truly understand) startups, all of the startups banked with them.
there's only so many VC firms, and every major investor gets a board seat. so there's several dozen people in silicon valley who sit on dozens of boards each. and if they get spooked by a bank announcing they need to raise funds due to bad bets, they can call up every one of their portfolio companies and trivially induce a bank run in the order of billions of dollars.
but every single one of these jackasses, somehow, thought that SVB was safe until yesterday morning, telling their portfolio companies that banking at SVB is a condition of getting their backing. despite the fact that their primary clientele is startups. these dipshits were literally telling all of their eggs to put their eggs into one basket. then they saw the basket had a hole and smashed it to the fucking ground, and now founders are trying to figure out how to make payroll for wednesday.
don't worry, i'm sure these same people are all correct about AI.
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i believe i'll be fine at the moment — my employer's situation is somewhat unique among the "where's my fucking money, SVB" crowd
