skysight-inc/HackerNews huggingface dataset:
Ah, the age old question: is it cheaper to bailout (to one degree or another) 1 bank or watch 9 more fail because they're in the same position but the run hasn't started yet...

I wonder how much this outcome was foreseen and discussed by the fed when they went into full rate rise mode.
FDIC insurance covers protecting depositors if a bank fails. I don’t see how you could interpret that as allowing anyone to give money to investors.
> If depositors aren’t protected, then it’s going to have a lot of downstream impacts

But doesn't that hold true for basically every situation where private companies lose money?

If my employer goes bust, then there is also downstream impact. FAANG laying off workers also has a lot of downstream impact.
Hopefully those might be able to be clawed back?
That really invites mold. Forced air ventilation may satisfy the building code but is not as effective—especially if the power goes out.
This has always baffled me about these projects. I think the only thing I heard of that sounded like it may be feasible was Golem [0], as that's about renting out real world hardware. And I've no idea if it is, but I can imagine it could be something where it's all programmatic, distributed, transactional and verifiable, but I can also imagine it being full of real world holes.

Or I guess namecoin [1] sounds like it could work with a critical mass for adoption. But it seems to be a real subset of real world problems that are solvable. Things that inherently make sense being protocols and distributed I guess, I'm not sure if there are other classes of problems that could work well as 'web3' things

[0] https://www.golem.network/
[1] https://www.namecoin.org
Until your money gets locked up and/or you face a haircut...
Can that be clawed back?
It's also worth noting that sources such as this article from The Economist[1] show that Sweden endured waves of excess deaths of up to 6% that neither Norway nor Finland reported, and instead show only residual variations.

From the article:

> Countries in northern Europe have generally experienced much lower mortality rates throughout the pandemic. Some Nordic nations have experienced almost no excess deaths at all. The exception is Sweden, which imposed some of the continent’s least restrictive social-distancing measures during the first wave.

[1] https://www.economist.com/graphic-detail/coronavirus-excess-...
Why do the rules keep changing after the game has been played? And why does it seem to always favor people who are already wealthy beyond imagination? The rules were 250k insured. If you had excess deposits, additional coverage could easily be purchased.
Being at the top of the line in bankruptcy proceedings is the law. So they shouldn't be generally subject to lessons from the government that go beyond that...
Taking your statement independently of this particular situation: if they're paying taxes on their crypto gains, I don't see a conflict in wanting that? There are plenty of people doing forex who would (IMO correctly) expect the government to do something if their foreign currency is stolen by fraud or deception.
It tends to get more "perfect" as samples increase. For stars there are ALOT of samples.
Probably mostly targeting financial services companies with those prices.
i don't know why you're all arguing about marxist-leninist state communism in a thread about anarchism. of course it's bad and does not work. that's what the link i shared says.
Looks better: “Sometimes writing for money — rather than for art or pleasure — is really quite enjoyable.”

Punctuation matters, but space -- the "zeroth punctuation mark" -- matters more!

The author does discuss spacing the dashes but is, given the overall point of the article, surprisingly noncommittal.
> So, what’s next? FDIC finds a buyer for the assets, perhaps a private bank or a a pseudo-government body who has the ability to wait till maturity, and in the meantime, everyone gets all their deposits.

Yes, that's happens in the ideal case. However, due to the rise in interest rates, the market value of SVB's assets is likely lower than $175B at the moment; so it might prove challenging for FDIC to find a buyer for these assets at the required price to give everyone their deposits back. Even well-capitalized entities that have the capital to refund depositors now and the ability to wait till maturity will not pay the face value for these bonds, as they can get a better return by investing that money somewhere else (such as treasuries).
I thought you could post much longer tweets now? Or did that get rolled back?
How does one start a new business or sell a product in a world without advertising?

How do you scale something fast enough through just word of mouth to get out of the red?

If I open a new bakery, is it predatory to send a pamphlet to the nearby houses? Should I just sit quietly and hope that enough people notice?
JP Morgan Chase is the largest bank in the United States. If JP Morgan Chase was taken over by the FDIC, it wouldn't be payroll delays that were making the headlines.
On Linux you can use `lsusb` to get a cleaner list of all connected USB devices.
True, but bathrooms and laundry can be shared amenities (like in a dorm). Ventilation can be accomplished without windows via ducting.
Oh they are, they just cynically believe there are enough rubes that can be sold on the “vision”.
> Imagine a 70 year old woman who just lost her husband and sold her house to downsize to an apartment. She has $1 million in her SVB account and plans to live off the interest in her retirement. Should this 70 year old widow take a $750k haircut because she hasn’t spent the last few years brushing up on SBV 10-k filings and calling up SBV’s board of directors to ask them how they plan to manage interest rate risk?

Making a sob story about a 70 year old granny doesn’t change the facts.

And she wouldn’t take a $750K haircut. She’d get $250K guaranteed and her share of the remainder which is not going to be zero. Probably much closer to 80+% of the balance above $250K.

> If an enormous earthquake strikes one region causing billions of dollars of damage but you live on the other side of the country do you complain about the federal government spending your tax dollars to help those people rebuild?

If it’s going to be done with funds not allocated or aligned with FEMA then damn straight I’ll complain. Society does not have infinite money. If they want to increase funding for something then we have a process for that.
or don't care
The depositors aren't a monolith. The ones you want to blame aren't the ones whose money went missing.
How does making the depositors whole affect any of that, though?
What makes anyone think I didn't examine the arguments?

What is your view on the Tragedy of the Commons with regards to air, and ocean?

Are you advocating they be privately owned?
Are there any figures on "weighted average maturity" of bond holdings of banks? That seems like a key health indicator right now...
For example, the Bible bans this based on at least two premises (although interpretation/enforcement varies between churches). Ephesians 5:18 commands Christians to not be drunk, based on other passages like 1 Corinthians 6, this is commonly extended to anything that inhibits your mental faculties for pleasure. Romans 13 commands Christians to obey the authorities, and cannabis is currently federally illegal in the USA.
If depositors take a haircut, what incentives could smaller banks offer in order to remain competitive with GSIBs for business deposits? Higher rates seem like it would just increase risk.
I'm not saying these buildings are "cheap". Just objectively, it's much cheaper to transform a "giant aircraft hangar" (which sounds awful, BTW) into open floor working spaces, than to use the same space to build and design individual offices for everyone. I'm not a civil engineer, but the windows, walls, ventilation, cabling, cooling/heating, etc., is surely much more expensive for individual offices than what open spaces in a "hangar" would require. The cost of interior design would be substantially lower as well. How could this be 3x the price per square foot of private office space? Was this some expensive military property?
bull. shit. if their assets actually could be liquidated for full cover over time than any other bank with plenty of reserves would be happy to buy them. that didn't happen, so we know for sure their assets are not worth what they claim on any timeline.
> I’m just going to move my funds to the biggest bank I can find.

Why would 2023 lead to you do that if 2008 had not?
Apparently much of the money was in long-term treasury bills, which is only perfectly sensible if you believe you will not have to access that money for 5-10 years.
It's interesting to see First Republic bank having this trouble. It seems clear (feel free to correct me) that they ALSO had massive loan portfolios at extremely low rates which have likely rapidly and seriously declined in value over longer terms. And it's likely they too were enjoying a deluge of deposits from the valley's success and are now seeing huge amounts of money drying up. I'm not saying the bank is bankrupt, but they too could easily end up in a liquidity crisis. In fact, I wonder if they already are heading in that direction...
Not to be flippant, but ask your manager or your HR people. The best people to know who does your company's payroll are the people at your company.
Funny thing is, part of why SVB blew themselves up was they bought a bunch of long term mortgage backed securities paying low rates so now those securities have lost a ton of value if they were to liquidate them (which the FDIC will be doing shortly).

But I don't think the Fed engaging in QE constitutes a bailout.
Looks like syntax highlighting from the shell. (Text between quotation marks being highlighted, numbers and key words like "for", "and", "in", "create", "as", "or".)
I agree with you, except for the comment about Libertarians. Let me assure you, as a member of the Libertarian Party, that we don’t in general like or support government bailout of special interests.

I 100% agree with you about the chutzpah level being really annoying! I also like your comments about the groups of workers adversely affected in the past.
Plenty of folks called those a scam too.
literal NFT circle jerk
It’s generally not very controversial financial policy that prevents a financial contagion like 1929.

A law was put in place in 1933 with a limit. If it didn’t have a limit, we wouldn’t be having this discussion.

Where were all these billionaires and VCs any time prior to this calling for uncapped FDIC insurance? This is special pleading.
Depositors are protected exactly as any other depositors and there are solutions to the protection ceiling. Like insured cash sweep.

That VCs forced the small companies to operate in less safe way and gave them bad advice is 100% fault of these. I do not know why it was so, but this really seems like the case of "we want benefits of minimal regulation and getting better protection then everyone else gets from the goverment".

It does rubs people wrong when you are all about disruption and regulation bad, but first thing you do in case of failure is governmental bail out for large accounts.
The government could insure it. The first $250k per depositor is automatically insured and then after that they have to pay premiums per account.
By this logic, all my farts are novel content.
I have rewritten a relatively small but critical 2k CLI from nodejs/ts to Rust, and this was the best decision ever. Cold start and runtime performance got a big boost, but also the code design got much better, and the code is much simpler to maintain and evolve. The single binary install was also a big boost, which I assume is similar to Go.

Since then, we have written all our CLI in Rust, regardless of size.

Tip: for small personal CLI, "cargo watch -x 'install --path .'" can make the whole dev experience script-like.
It's 250,000 per institution. Just don't hold more than that much in a non-system critical bank, spread it out. If you do that you're 100% safe.
The salty commenters think it should go to them or the govt but won’t say it out loud lol.
Because if a normal business goes bust leaving customers out of pocket, it’s usually only a small percent of the customers “wealth” (and often insurance will cover it).

If someone’s bank goes bust they can loose a much larger proportion of their wealth. Often causing them to go bust, causing more bankruptcies and job losses.

Governments act as insurer of last resort for most bank defaults, because the confidence of the banking system and money is integral to the countries existence.
How I created my first Open Source project
So to punish them, we need to punish depositors?!?
Deposits in a bank are not assets that you can pay out to shareholders in bankruptcy. it doesnt matter how you've organized your balance sheet internally, those liabilities come first or you arent a bank.
Fake news. The largest bonuses paid were $140,000 to managing directors, which is just bankerese for VP. Bonuses were already scheduled to be paid and earned for work done in 2022.
I thought most of the issues in 2008 stemmed from lessons learnt in the aftermath of 1929 which were either forgotten or were forcibly unlearnt (repealed) after decades of lobbying.

So, even if we do learn lessons, don't expect them to last very long.
The problem is that we don't yet know what the "rules" will be in this case, and a lot of commenters are getting out over their skis assuming that tax money is going to go into the bank accounts of SVB depositors or something similar.
Ask HN: Why is the hunger for RAM never satisfied?
Throw 16GB at a system and start up a few browsers and other programs, and pretty they have used up almost all the RAM. It seems browsers in particular will happily eat all the RAM they can.

Why is this? At what point will the hunger of apps for RAM be satiated? With 32GB? 64GB?

With all the advances in tech, why are our hardware still struggling to keep up with demands of the apps we use?
Absolutely. Unknowingly, I just wrote almost the exact comment as this. There's no shortage of TikToks's of people giving tours of their ridiculously small apartments in the outer boroughs. Imagine how alive the financial district could be with a influx of thousands of young people.
When you capitalize a bank with deposits, are you really an “investor” with expected risk/reward?

I am not for totally punishing someone who expects a near-zero return on a loan, especially when they made the loan with the expectation the borrower would help other businesses be productive.
The government, as we saw in 2008, won't allow those banks to fail. That's literally what "too big to fail" means. If the government doesn't have the ability to keep such banks afloat, then we have worse problems.
What you describe is regular burn-in, but this is not just burn-in.

Leaving a static image for >30m has no visible effect on this panel.

In this case it's the flicker itself which persists on _top_ of a slight color shift, and requires only a few minutes of exposure.

I tried this on another older dell IPS panel and I observed the same. Quite interesting!
It says exactly that:

“ Janet Yellen said on Sunday that the US government was working closely with banking regulators to help depositors at Silicon Valley Bank but dismissed the idea of a bailout. […] “Let me be clear that during the financial crisis, there were investors and owners of systemic large banks that were bailed out . . . and the reforms that have been put in place means we are not going to do that again,” Yellen said.
“But we are concerned about depositors, and we’re focused on trying to meet their needs.”“
The good news is that even in a worst case scenario of a fire sale, we are talking about a small percentage of uninsured deposits at risk (likely around 5% depending on how many deposits were successfully pulled over the last couple of weeks).

However, a fire sale is definitely not needed for all assets, and it seems likely given Yellen's comments that the government will provide some short term liquidity so that the fire sale of illiquid assets is not necessary (e.g. portions of their loan portfolio; their $7bn municipal bond portfolio; their $3.5bn of unmarketable securities (largely affordable housing projects...).

Honestly, in many ways the regulation worked. What our regulation didn't account for is that bank runs at the non-top 4 banks have become more likely in a interconnected world with "too big to fail" alternatives.

The $120bn FDIC Insurance Fund (self-funded by the banks and not the government) will definitively not even take a penny loss from this failure. That to me is the actual problem.

We are not protecting enough of the banking system with insurance. Should it be 100% of all deposits, probably not. Should it be up to $1mm or even $10mm per depositor, probably! Why should someone who sold their $750k family home yesterday be out any money just because they decided to deposit the money at their non systematically important bank? Or why should a non-profit that just completed their annual fundraising push for $1mm be out some of that money?

SVB "Fire Sale" Scenario Napkin Math

Note: Uses 12/31 numbers, but that should be largely inconsequential for determining the net liquidated cash value of a fire sale

$209bn assets

- $15.5bn HTM MTM + Slippage

- $7.5bn Loan Impairment + Slippage

- $2bn AFS Impairment + Slippage

- $1.5bn Non-Marketable Securities Impairment + Slippage

- $0.5bn Goodwill + Intangibles

- $0.5bn Property, Equipment, Lease & Other Asset Write
Downs

- $0.5bn Wind Down Administration

$181bn Liquidated Cash

- $15bn FHLB "Super Lien"

$166bn Liquidated Cash Available to Depositors

- $7.6 Insured Domestic Deposits

- $151.5 Uninsured Domestic Deposits

- $13.9bn Foreign Deposits

$7.5bn Liquidated Cash Shortfall
75% of depositors had less than $250k on account and every one of these accounts will get all of their money tomorrow. The rest of the depositors will get $250k tomorrow and most of the rest of their money later.
Per account type, per person, per institution.

So separate checking and savings are insured for $250K each.
Should be a marketplace for buying receivership certificates for SVB deposits
There should be a marketplace for buying receivership certificates for Silicon Valley Bank deposits at a discount.

This would allow a firm with $10 million in deposits to instantly get $7 million or so of actual cash.

Painful, but market-based (w/ no bailout).

Thoughts?
> You have the option of not consuming the content of those who want to get paid

Not really. Suppose you go onto a platform like YouTube, where most people are not being paid and some are (through advertising). How would you choose to consume only the content of those not being paid? There's no way to do that except to avoid YouTube and all similar platforms entirely which is not a reasonable option for most people.
2024 DeLorean Alpha5: Motors, Power, Price, On-Sale Date, and More
Since bank run can be contagious, private insurance may fail to pay out in those cases.
Depositors failed to do their due diligence, the bank offered 'sweet heart' deals to get customers. Depositors should lose their pants and have to wait for the FDIC to liquidate before getting any funds.

No one deserves free, unlimited, zero risk access to depositors. If you want to do that, you should buy bonds, short eurodollars as hedge, and get loans against the bonds. None of this is free.
What it says though, is that bailing it out is off the table.

Which has an effect on the investors outcome, hence help depositor better, or at lower cost.

It's an investors, depositors, and tax payers dilema.

The brightest and only fair outcome would be that a private funds/bank aquires SVB. That way everyone is made whole at the expense of nobody. A very unlikely scenario given nobody would touch a beyond help entity with, potentially, liabilities turning out greater than the overall assets left. Intengible assets may save the day, still a bit of hope there.
A lot of people with libertarian tendencies involved in crypto think that post secondary education is a waste of resources. So perhaps crypto is like a finishing school in economics for these types. Seems more expensive than traditional universities though.
During IndyMac, widely considered the worst bank failure in the fdic regime, uninsured depositors eventually got back over 85% of their deposits.

They had 50% in hand the week after the receivership.
So? That doesn't change anything.
In Britain the protected amount is £85k per person per banking group, and it's universal that anyone with more than that splits it over accounts with multiple banks, taking care to make sure the banks aren't part of the same banking group.

Is it any different over there, albeit for the rather higher limit, in America?
If I could be arsed, I absolutely would. As someone that prefers it without oil, I imagine it would be dirt cheap to make.

Convenience is a killer though :)
it's only free for websites. if you are primarily an API, you have to pay (or wait for them to terminate your account) and it is EXPENSIVE.

the free tier also has subpar networking in many parts of the world. make sure you don't care about those markets.

edit: here are the terms of use:

2.8 Limitation on Serving Non-HTML Content

The Services are offered primarily as a platform to cache and serve web pages and websites. Unless explicitly included as part of a Paid Service purchased by you, you agree to use the Services solely for the purpose of (i) serving web pages as viewed through a web browser or other functionally equivalent applications, including rendering Hypertext Markup Language (HTML) or other functional equivalents, and (ii) serving web APIs subject to the restrictions set forth in this Section 2.8. Use of the Services for serving video or a disproportionate percentage of pictures, audio files, or other non-HTML content is prohibited, unless purchased separately as part of a Paid Service or expressly allowed under our Supplemental Terms for a specific Service. If we determine you have breached this Section 2.8, we may immediately suspend or restrict your use of the Services, or limit End User access to certain of your resources through the Services.
But if they were to get 100% of their deposits, even if the bank's assets would only cover e.g. 95%, it would be a bail out, wouldn't it? The government would step in and cover the difference with tax payer money.

Because that seems to be what some people are demanding, but they don't use the term bailout, because of the connotations.
But why, when we can inject billions into the pockets of ATT, Comcast, Verizon, and friends. It’s far too lucrative an opportunity to let any more infrastructure ever be public again.
Of the three major OSes, Linux has the most intuitive way of producing special characters with its compose keys
> they conspired to perform a huge bank run

Individual depositors don't need to conspire to reach the conclusion that in a bank run scenario, it is virtually always in each depositor's own best interest to withdraw their money.
> I was always a fan of cubicles, and never got the FAANG fascination with open plan workspaces, that the entire industry seems to have adopted

I can explain this in three words:

* money
* money
* money

Open-plan is much cheaper.
Tangent: In decades of socializing in NYC and the Bay Area, I've only ever seen the term 'flyover country' used by people complaining that the coastal elites look down on them. Never once heard the term from an actual coastal elite.
"assets" are the dollar amounts of the loans you have issued. what those "assets" are actually worth is a completely different number.