General Discussion
In reply to the discussion: @JohnFetterman to SVB exec Greg Becker:"Shouldn't you have a working requirement after we bail out [View all]BeckyDem
(8,361 posts)That is his point, but at least I now see where you're coming from...although I disagree with your take on it.
By Paul Krugman | The New York Times
| March 14, 2023, 9:34 p.m.
Excerpt:
Furthermore, having to rescue this particular bank and this particular group of depositors is infuriating: Just a few years ago, SVB was one of the mid-size banks that lobbied successfully for the removal of regulations that might have prevented this disaster, and the tech sector is famously full of libertarians who like to denounce big government right up to the minute they themselves need government aid.
But both the money and the unfairness are really secondary concerns. The bigger question is whether, by saving big depositors from their own fecklessness, policymakers have encouraged future bad behavior. In particular, businesses that placed large sums with SVB without asking whether the bank was sound are paying no price (aside from a few days of anxiety). Will this lead to more irresponsible behavior? That is, has the SVB bailout created moral hazard?
https://www.sltrib.com/opinion/commentary/2023/03/14/paul-krugman-how-bad-was-silicon/