> just because of their choice of financial institution
There’s a moral hazard to all choices made in business. Making a choice based on insufficient due diligence is a hazard. Chasing higher rewards at higher risk is a hazard. Are you saying the government should indemnify businesses for their choices?
My understanding is that SVB avoided some restrictions placed on other banks. It’s not clear to me the why’s and wherefor’s of this but there are only two options. Either malfeasance on the part of SVB, or ignorance/risk-taking on the part of the customers.
The scahdenfreude I believe comes because it’s assumed many customers would be from the “this time it’s different” school of business, in which case there’s a lesson akin to caveat emptor begging to be learnt.
There’s a moral hazard to all choices made in business. Making a choice based on insufficient due diligence is a hazard. Chasing higher rewards at higher risk is a hazard. Are you saying the government should indemnify businesses for their choices?
My understanding is that SVB avoided some restrictions placed on other banks. It’s not clear to me the why’s and wherefor’s of this but there are only two options. Either malfeasance on the part of SVB, or ignorance/risk-taking on the part of the customers.
The scahdenfreude I believe comes because it’s assumed many customers would be from the “this time it’s different” school of business, in which case there’s a lesson akin to caveat emptor begging to be learnt.