a lone debt round in my company is a good move for SVB and the economy. Following the VCs into these crazy valuations is a movie remake 15 years in the making. 1998 was fun and this will be fun for a little while longer too.
Hi, Jon Fisher here, picking up this thread via a Google alert. The bureaucracy alone required to source and execute asset acquisition and disposition will offset any possible gains due to fraudulent and unforeseen costs and incompetency but that isn’t the issue.
This is not what the government or this great country does. It kept hands off of Lehman and a rate cut and then all of a sudden a defacto control position in AIG and now this? We need many more Buffet, JPMorgan, BofAs to step-up to assets under the auspices of a government backstop rather than a government hedge fund. Wells Fargo is the best run company in the financial services space yet to "acquire" anyone.
I don’t worry about insuring my deposits at Wells Fargo or Bank of America or Silicon Valley Bank or Bank Of Marin or ANY bank that is generating a positive net income and running a real business. Why must we prop up some others quarter after quarter that are hemorrhaging and are not real businesses? For every Washington Mutual there is Wells Fargo. For every General Motors there is Toyota. Why are we allowing some of these companies to get it so wrong and drag the rest of us down? We know why...
We can’t borrow infinitely against the value of U.S. treasuries currently held to the tune of (July) ~$1.5T by Japan, China, UK, Oil Importers and Brazil alone with another ~$1.1T held by other countries because this value is the last backstop this country has. What is to stop these countries from selling our treasuries given our entire policy and rationale is eventually inflationary (e.g. raising the debt ceiling yet again). What is to stop these countries from applying political or god knows what other kinds of pressure in exchange for not selling our treasuries?