The truth is VCs are terrified their investments in their startups are going to go to 0. That’s why the biggest most vocal people are VCs talking about this. So they are framing the “we need to make depositors whole” as if they care about small business when really they are just talking their own book.

The real solution is that VCs should give a loan to all their startups so that they can make payroll. Isn’t that their value-add? They should be the backstop for their investments. But instead they want the government to step in.

It’s another example of “socialize the losses but privatize the gains.”