in the country’s history. And it followed a weekend of pleading from industry leaders who warned that if the government didn’t ride to the rescue, the entire start-up ecosystem would be devastated.
“If the government doesn’t step in, I think a whole generation of start-ups will be wiped off the planet,” Garry Tan, CEO of the influential start-up hub Y Combinator, said in an interview with NPR on Saturday.Instead, the start-ups will get to keep their money, to the relief of the venture capitalists who fund them. But the mythology that has made Silicon Valley start-ups the darlings of the American business world may prove harder to recoup.
Here we have a sector full of self-styled free thinkers — brought to its knees by groupthink. Risk-takers who valorize failure — as long as someone else is footing the bill. Meritocrats who couldn’t hack it on their own. Mavericks who scoff at the political establishment until they desperately need it.
Many experts believe the Federal Reserve made the right move, under the circumstances, to stanch what it deemed a “systemic risk” after a second bank, New York’s, also failed over the weekend. At stake were not just the portfolios of deep-pocketed venture capitalists and shady crypto companies, but the ability of numerous small businesses to pay their expenses and employees, along with the solvency of other midsize banks around the country.
Too big to fail, too big to jail. America in a nutshell. The game is rigged and you’ll never win. Just shut up and take it.
Davidlaz Greed can't be self-controlled, it has to be governed.
It really is not surprising that the Silicon Tech people are Corporate Welfare bums…
Wow…just wow.
Democrat atm machine
More regulations have to be adopted. “But the trust that the U.S. government showed in the bank’s ability to self-regulate wasn’t repaid by the industry whose interests it was built to serve”
Why should the taxpayers bail out a bunch of incompetent DNC cronies?
Biden administration promises to tax the billionaires in silicone Valley as they give them billions of dollars
Another bankster catering to the rich with 68% of deposits above the now defunct $250K insurance limit. FDIC does not have anywhere close to the billions required if there was a bigger run so even more bailout would be required by the public.
The role of govt and VC are actually more similar than I think people realize. VC is an asset class for very wealthy individuals and institutions because they are able to take on the excess risk that comes with it, which produces breakthrough tech (sometimes)
It had been foretold ProphetElvisMbonye
At what point in history was Silicon Valley an 'underdog'?
Use their own money to stay afloat..always big cats robbing our tax coffers..
So once again, Capitalistic Socialism?… No one but taxpayers paid for 2008. And why do big oil companies who rake in record profits deserve subsidies?
Too Big To Fail ...... 'But Not Too Big To CHEAT
They were too politically connected to fail. If the depositors had not had the insurance cap removed, it would have been painful for a large number of businesses, but the banking sector as a whole would have been fine.
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