tomato_123

8 ms·

1.
by tomato_123 3y ago
I wish the e/acc guys would work on this instead of boring b2b productivity services lol
2.
Why do so many e/acc people run boring B2B service startups?
3 points by tomato_123 3y ago|2 comments
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by tomato_123 3y ago
I heard it has a simp infestation
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by tomato_123 3y ago
It’s a pretty good site!
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by tomato_123 3y ago
Luckily, barely any startups actually have revenue.
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by tomato_123 4y ago
Bailing out the depositors is bailing out the VCs who own the depositors.
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by tomato_123 4y ago
All of these companies could have sold their uninsured deposits at a discount, made payroll, and let their equity holders take the loss. This is what equity holders are supposed to do. Instead they went on an embarrassing twitter begging ca
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by tomato_123 4y ago
They went around begging for bailouts when they could have just had the companies sell the uninsured deposit claims at a discount, paid their workers, and, as equity, eaten the loss.
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by tomato_123 4y ago
What innocent? They could have sold the uninsured deposits at a discount, made payroll, and let the equity eat the loss. Instead they went on an embarrassing bailout begging extravaganza and unfortunately succeeded. Nobody, ever, should tak
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by tomato_123 4y ago
"If the bank collapses then many startups shut down." No, the equity gets wiped out, and if it's a good idea/good business it persists and gets funding elsewhere. "You say it's a bunch of rich people profiting.
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by tomato_123 4y ago
There was plenty of private capital ready to step in and buy these deposits, at a discount of course, making it possible to make payrolls. You and your ilk just didn't like that the equity holders would have to eat the loss. Stop prete
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by tomato_123 4y ago
This is incorrect. Payroll pierces the corporate veil.
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by tomato_123 4y ago
It's an impossible standard to hold founders to know that deposits are insured up to $250,000? This isn't exactly fine print. Just be minimally competent and not a clown.
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by tomato_123 4y ago
"Equity is when you take risks, except for the risks you didn't anticipate" Absurd take.
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by tomato_123 4y ago
Empathy is completely irrelevant. You agreed to a particular financial contract, one that ended up being a mistake ex-post. Now you want to wind back the clock and pretend you agreed to a different contract, and leave other people on the ho
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by tomato_123 4y ago
There are a zillion ways to deal with this. Split up your cash. Buy private insurance. Whatever. They agreed to a particular contract---deposits insured up to $250,000, and then ex-post, when it turns out they should have done something dif
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by tomato_123 4y ago
Not bailing out some VCs who hold equity in these depositor-companies would not fuck up the economy. Completely absurd and outrageous.
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by tomato_123 4y ago
Calm down. No it won't. We have financial markets. Good startups/innovations will get funding elsewhere. This is already happening. The current equity holders will lose a bit. No big deal.
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by tomato_123 4y ago
He is (likely self-interestedly) angling for a system-wide guarantee on uninsured deposits. He's pretending something like this is true: SVB's failing will have a contagion effect on other banks (though some mechanism that he does
20.
by tomato_123 4y ago
Yes, thank you. I feel like people are throwing around "MBS" because it's vaguely menacing and reminds people of 2008. 2023 MBS are a completely different animal; any comparison to 2008 is a total red herring from people angl
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by tomato_123 4y ago
Long-duration fixed income assets go down in value when interest rates rise. This is true whether they're long-dated treasuries or agency MBS. Banks that finance with short term liabilities and own long-term assets are risky because of
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by tomato_123 4y ago
This is not a contagion event, this is a "lots of banks were exposed to the same macro economic risk" event. It'll play out how it plays out, but a bailout of SVB's depositors (what he and others are explicitly arguing f
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by tomato_123 4y ago
If the securities can be easily liquidated then there's really no economic loss for these guys going under. The real economic cost of a bank run is the early liquidation of good firms. If all these small and medium banks just have to s
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by tomato_123 4y ago
"Small business depositors at Silicon Valley Bank should be made whole." Don't beat around the bush. You are asking for these depositors to be bailed out. "Depositors" is a weaselly way to say "companies that m
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by tomato_123 4y ago
Totally absurd justification for a bailout coming from the people who will most benefit. When airlines go bankrupt they don't burn the planes. Someone else finances them at a discount. Same thing here: if you have a good idea, a good b
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by tomato_123 4y ago
> If you banked at SVB, you should not be punished, you in good faith put $300,000 of your companies revenues into your account (IT SHOULD BE SAFE) and that will let you pay your employees and bills for the next few months, the bank fail
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by tomato_123 4y ago
Apocalyptic nonsense aside (good ideas, good people, and good innovations will continue even if the current equity holders of a startup are wiped out), if the argument is "we need to make sure people can make their mortgage payments,&q
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by tomato_123 4y ago
> Small business depositors at Silicon Valley Bank should be made whole. Regulators need to conduct a backstop of depositors. We are not asking for a bank bailout. Put another way: "We are asking for a VC bailout."
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by tomato_123 4y ago
Totally absurd justification for a bailout coming from the people who will most benefit. When airlines go bankrupt they don't burn the planes. Someone else finances them at a discount. Same thing here: if you have a good idea, a good b