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Dr. Jorge Caballero

Why mention this ^^ because the spin cycle is at work— I've lived through this bullshit 3 times already. The playbook is *always* the same: blame everything *other than* the lack of regulation and lackluster enforcement. Find shameless, clout-seeking useful idiots to amplify, give them fancy sounding titles, and run their hot takes on a loop until the public accepts the "need" to bail out the billionaires that manufactured the mess. Let's not get fooled again.

11 Mar 2023 at 7:04 | Open on fedified.com
8 comments
Dr. Jorge Caballero replied to Dr. Jorge Caballero
Dr. Jorge Caballero replied to Dr. Jorge Caballero

As I warned about in yesterday's posts to this thread:
✅ faux empathetic framing
✅ quotes from clout-chasing useful idiots with fancy sounding titles
✅ Bailouts for billionaires

Every. Fucking. Time.

washingtonpost.com/us-policy/2

12 Mar 2023 at 3:52 | Open on fedified.com
Dr. Jorge Caballero replied to Dr. Jorge Caballero

Let's be clear: the money is there. It's in government bonds and other illiquid assets that will be sold (at a loss) but the money is there. On Monday, the U.S. government will make it possible for each customer to withdraw up to $250K.

Those pushing to "make all depositors whole" are angling for a billionaire bailout. That's who stands to lose as the FDIC sells the bank's assets.

The money is there.

The money is there.

The money is there.

12 Mar 2023 at 4:18 | Open on fedified.com
Dr. Jorge Caballero replied to Dr. Jorge Caballero

FDIC makes it clear that people that need to get paid, will get paid, even startups that had approved lines of credit with prior to the VC-led bank run:

"When the FDIC is appointed receiver, it immediately begins analyzing loans that require special attention, such as unfunded and partially funded lines of credit, and construction and development loans."

The money is there. The profits for the bigoted billionaires are gone. That's why they're demanding a bailout.

fdic.gov/resources/resolutions

FDIC makes it clear that people that need to get paid, will get paid, even startups that had approved lines of credit with prior to the VC-led bank run:

"When the FDIC is appointed receiver, it immediately begins analyzing loans that require special attention, such as unfunded and partially funded lines of credit, and construction and development loans."

12 Mar 2023 at 4:33 | Open on fedified.com
Dr. Jorge Caballero replied to Dr. Jorge Caballero

More proof that a government bailout would go straight to the pockets of the 1%: Hedge funds are reportedly offering 60-80 cents on the dollar for certain assets. This tells us 2 things: there's profit to be made on the assets of SVB *and* the 20%-40% loss would be the amount that taxpayers would be gifting to the a—holes that literally directed this meltdown.

unusualwhales.com/news/hedge-f

More proof that a government bailout would go straight to the pockets of the 1%: Hedge funds are reportedly offering 60-80 cents on the dollar for certain assets. This tells us 2 things: there's profit to be made on the assets of SVB *and* the 20%-40% loss would be the amount that taxpayers would be gifting to the a—holes that literally directed this meltdown.

12 Mar 2023 at 4:58 | Open on fedified.com
Dr. Jorge Caballero replied to Dr. Jorge Caballero

The key thing to note about reporting that hedge funds are trying to buy assets is that they're going directly to startups. They're taking advantage of the panic to make a profit. They're quite literally behaving like predatory payday loan sharks. They know damn well that the money is all there, and that they'll be able to cash in at 85-90 cents on the dollar. If there's a bailout, they'll profit the full difference up to $1

reuters.com/business/finance/h

The key thing to note about reporting that hedge funds are trying to buy assets is that they're going directly to startups. They're taking advantage of the panic to make a profit. They're quite literally behaving like predatory payday loan sharks. They know damn well that the money is all there, and that they'll be able to cash in at 85-90 cents on the dollar. If there's a bailout, they'll profit the full difference up to $1

12 Mar 2023 at 5:06 | Open on fedified.com
Dr. Jorge Caballero replied to Dr. Jorge Caballero

Where do people think all those equities on 's balance sheet came from?

Why do people think that Y Combinator-investors are vocally demanding a bailout?

Hint: some folks will lose all their profits when their convertible notes are sold at a discount.

svb.com/account/y-combinator

12 Mar 2023 at 6:01 | Open on fedified.com
Dr. Jorge Caballero replied to Dr. Jorge Caballero

Let's be crystal clear: this was a bank run directed by one group of venture capitalists, which left another group of venture capitalists holding the bag. The latter is vocally demanding that taxpayers "make them whole" which translates into: rewarding them for assuming unmitigated risk.

The FDIC will ensure that bills are paid, loans are serviced, and payrolls are funded. The VCs that go out of business played the game and lost. That's capitalism. They can't have it both ways.

12 Mar 2023 at 6:36 | Open on fedified.com
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