Yah. A "bailout" is any injection that makes whole any interested party facing losses. As in "The depositors were bailed out".
The hypocrisy around this is really disappointing.
Yes
It is the most basic of business tenets to do risk assessment on strategic company decisions to reduce exposure to risk
I am sorry you are offended by the fact that I look down on you for your lack of business competence. I used to expect better of people managing hundreds of millions of usd in capital, but I guess not
It is due time for Silicon Valley to face some financial discipline
This is such a weird thing to say, you know that right? I wasn't even talking to you.
The argument that the system should punish people for not risk averse enough to protect themselves against bank failures is like saying that languages with type checking are bad because they make soft programmers who can't protect themselves, even though the safer system is easier to use, and allows its users to focus on different, more important/business relevant problems.
Yes.
> Do you expect every startup to run their own little hedge fund to manage their cash?
I expect them not to trust banks.
Those are not the countries Americans are flocking to for good reason.
Don’t startups already follow the standard model of whatever the VCs say is the right way to do it? As in—there’s a tremendous amount of cargo culting, no? Or perhaps that the banks specifically require an exclusive deal. In either case, not an unsolvable problem.
It's funny how all these techies cant apply their own best development principles (e.g use sensible defaults) to real life.
IYI
That's how it is with everything. If a farmer plants some crops but it drops in price to the point it's completely unprofitable, is he being punished for growing food? Does the government bail him out?
If a drunk driver is doing 120 mph on a freeway and crashed into a normal motorist and sent him to the hospital. The right argument or response isn't that he should've seen it coming in the rare view mirror and moved a lane over.
They lent their money to the bank. They are absolutely responsible.
That social model also brings great depression as a feature, and we decided to moved away from it because great depression bad.
> The Great Depression/Peak global unemployment 24.9% 1933
> Great Recession/Peak global unemployment 10% Oct 2009
Not even closely comparable, thank you for nominating cases as to why the new model is superior.