It's clear that many VCs are not providing basic fiscal knowledge to their companies. There is no excuse for operating funds to be put at risk in this manner. Starting a business is risky. There is no excuse taking on risk that is not necessary for your business.
And now there are a bunch of assholes on RU-vid trying to incite runs on other banks. SVB had a unique business model focusing on large deposits from VCs and startups. This meant that, this bank was even less diversified than most other banks. Unfortunately, bank runs are mostly psychological. They are a self fulfilling prophecy of scared people. Keep in mind this: if you have less than $250,000 in a US bank, you have NO risk of losing ANY money in a bank at all.
interesting- the late stage VCs say the problem is limited to early stage companies, the early stage VCs say the problem is limited to late stage companies.
SVB collapse was not seen by Hindenburg because they were focusing on Indian companies and forgot to make report on their own companies on verge of collapse
Maybe these VC instead of blindly investing in some lame app idea actually look into small businesses that have shown positive cash flow and seriously have potential not just in tech and not simply for nerd who make some lame app that not proven yet!
They lent then the money for the startup company and you go to the next door and they lend you the venture capital... I mean it doesn't take a fucking genius to figure it out...BAD LOANS
That's what good about market capitalism, its correcting bad investments for crony capitalists running this bank. This one is a Titanic Ship. The operators of this bank will get invited in World Economic Forum at Davos next year, on global economy.
@@stoundingresults what do those countries have to do with this topic except for that they have been sanctioned out of oblivion by the US economic system aka world economy to tank their economies and destabilize their societies? What do you think would happen to the US if we were sanctioned out of oblivion by the world economic system in the same way? Our economic system is fragile, and any economic woes are caused internally, not externally. Russia is a capitalist country and Cuba has a higher life expectancy than the US despite the economic and military incongruences between the two countries… its interesting that you didn’t mention China ww.
