Comments by "Dan A" (@DanA-nl5uo) on "SVB CRISIS: 2 Big Banks COLLAPSE, Get Insta-Bailout | The Kyle Kulinski Show" video.

Depositors that should have known the level of FDIC insurance that each account carries. If you deposit more than the insurance you are gambling.
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@krisalis709 with modern computer banking it was a choice on the part of the company when they choose to deposit so much money in one account. They did it because the banks offer large accounts special interest terms. They took the risk sorry if they gambled on the wrong bank management team they should have done their homework
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It is a bailout when the FDIC insurance limit was raised. Everything over that limit in your account was never backed by the federal government it was a bet on the quality of the bank
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Once again the USA has the best wealth care in the world. When the wealthy risk facing losing their non insured losses the government steps in. In 2008 6 million Americans lost their homes and the fed screamed moral hazard. But now that the wealthy where at risk nope the wealth care steps in.
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@krisalis709 doesn't change the fact that they choose to take the risk knowing the limits of the insurance
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@krisalis709 the federal reserve told us we would need to increase unemployment to fight inflation caused by too much money creation. Now that one of the banks that literally loaned that money into existence fails and the hardship comes you all the sudden don't want the results the fed literary told you their policy required. What's the matter was someone else suppose to lose their jobs so silicone valley could keep loaning money into existence?
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@krisalis709 I didn't say the Biden administration I said the head of the federal reserve stated it point blank. You are suffering from poor comprehension plus short term memory loss
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@krisalis709 you are letting the wealthy depositors scare you into giving them 100% FDIC insurance when they only paid for $250,000 per account. This is hostage taking and corruption nothing more. If the system had run it's course the accounts over $250,000 in SVB would have resolved to paying back 90% of the depositors value over $250,000. The loss of 10% of their bank deposits better not be a systemic risk of unemployment for the employees. You are just repeating propaganda for the wealthy if you think this was ever going to cause the companies to fail with the bank.
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The FDIC program set the insurance limit when you exceeded that deposit limit you took on the risk.
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@ReneSalasDesign if you don't like the FDIC limits lobby government to change them before the bank failures not after the fact. This is a bailout of companies who didn't understand the risk of their choices or where too lazy to minimize that risk.
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@HalcyonSunset so once again normal hazard only applies to the little guy. Priceless
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@HalcyonSunset you know the base of your argument is that no private bank should be allowed to be so big as to endanger our society
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@ReneSalasDesign you clearly didn't understand the risk when you deposited uninsured funds
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@ReneSalasDesign actually no the loans the bank issued which was the risk the bank took will be sold off. Those loans to startup companies was money the bank loaned into existence. When the head of the federal reserve told you we created top much money and that hardship and unemployment was needed this is literary what he was telling you his policy would cause.
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@ReneSalasDesign if you keep your money in accounts below 250,000 you can keep it all in banks with zero risk to your business. You are upset that the management team was too lazy to minimize their risk by following the rules of the insurance our government provides in order to get better terms with the bank on a larger account. That was the risk they choose to make in uninsured deposits to get some benefits
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@ReneSalasDesign you fail to understand how insurance works. Or the risk of bank failures that caused the USA to start the FDIC program in the first place. It was a program started because there where runs on banks in the great depression. Now after the fact you want the government to change the terms of the insurance policy we all paid into because the large account holders want $300 billion of FDIC insurance they never funded when they choose to put more money into an account than the insurance policy was funded to cover.
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@ReneSalasDesign the bank lacked the liquidity needed to meet the withdrawals of the very same large accounts you now want the Federal Deposit insurance Corporation to change their insurance limits to cover. Like I said you failed to understand the risk or how insurance works
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@ReneSalasDesign you need to watch the breaking points coverage of what happened. Because they show what the real risk was to the large account holders. It wasn't the risk to the companies you think it was.
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@ReneSalasDesign you want to take the word of the former senator who was put on the board of directors for the bank and then lobbied Congress to repeal his own legislation that would have prevented this crisis in the first place. Priceless. Neither of these banks was a systemic risk to the entire banking system either or they would have fallen under the legislation that was put in place to protect our system from to big to fail risk. You know the same legislation that SVB spend hundreds of millions making sure didn't apply to them after reaching 50 billion in assets.
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@ReneSalasDesign your logic is a prime example of why we need to let the system face the moral hazard. The wealth accounts at SVB risked a 10% drop in value if the system was allowed to run as designed. If losing 10% of their bank deposit was a systemic risk to our system there are far bigger problems. These companies lose more on the stock market than 10% of a single bank account regularly
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The depositors knew the limit of their insurance or they failed to know what they setup when they opened the bank account. Everything over the 250,000 is deposited at you own risk.
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Kyle is correct every dollar over the FDIC limit was never backed by the government it was a bet on the part of the depositors in the management team of the bank. They choose the risk when they deposited more than $250,000 into a single account let them take the losses
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