Comments by "Jeremy Barlow" (@jeremybarlow2291) on "Diversify Away from Bank Failures" video.

  1. You need working capital to run a business. That requires current accounts somewhere.
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  2.  @vinnieray6789  I am not in disagreement, and some of SVB's practices requiring companies loaned money to have all accounts with them needs further oversight and regulation to disallow those practices. I was just pointing out that there are decidedly reasons in large enterprises where uninsured current account balances could exists. Of course using the former CDARS now IntraFi Network could alleviate the issue and keep all accounts under the $250k threshold by depositing in multiple accounts at various banks in the network controlled by the master account at the primary bank, but if you have a thousand employees there is an above average chance that rents, utilities, insurance costs, advertising costs and payroll each month is going to run into at least the mid-seven figures if not into eight figures of monthly expenses you need to pay from a bank.
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  3. What this has demonstrated yet again is that in the US the game is rigged. A bank whose primary account holders are Ultra-High-Networth-Individuals, Venture Capital Funds, and start-ups funded by those financiers all of whom could have exercised reasonable caution to protect their working capital accounts by diversifying their deposits amongst multiple banks using what was formerly known as CDARS and is now IntraFI which let's one bank account act as the management account for multiple accounts at multiple banks providing FDIC insurance on deposits in excess of $250k by diversifying the banks the money is held in while providing the convenience of working as if it were a unified account. These same individuals could've also diversified cash equivalents into a brokerage account holding the cash in a money market account invested in short term treasuries - I mean the looming default risk from the not so bright members of Congress refusal to raise the debt limit aside, if US treasuries fail everyone will have bigger problems than a bank failure. What is more if their deposits exceeded the amount the FDIC could insure via the IntraFi Network, they could've purchased private deposit insurance as well, some companies with massive deposits did take these appropriately prudent steps to protect their cash holdings for Trust accounts. Now, as happened when small retail investors got a leg up on dumb insiders with the GameStop short squeeze, the system is moving to insulate dumb wealth from it's failure to protect itself at all times with rational actions to privately insure their cash holdings this time, while in the GameStop scenario the brokers simply forced their customers to sell to their preferred insider clients with no protection from the SEC for the small retail investor who had bested the Wall Street financiers at their own game. Depositors who are nothing more than ordinary creditors who would typically be wiped out in bankruptcy are being made whole on the backs of ordinary citizens who never get a bail out and always get handed the bill for the short comings of America's oligarchs. If that isn't a game more rigged than any casino, I don't know what a rigged game is then.
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