Hacker Newsnew | past | comments | ask | show | jobs | submitlogin
Silicon Valley Bank Blinders (johnhcochrane.blogspot.com)
19 points by Bostonian on March 12, 2023 | hide | past | favorite | 2 comments


An interesting bit: "It is not startups who lose money, it is their venture capital investors, and it is they who benefit from the bailout. Let us presume they don't suffer sunk cost fallacy. You have a great company, worth investing $10 million. The company loses $5 million of your cash before they had a chance to spend it. That loss obviously has nothing to do with the company's prospects. What do you do? Obviously, pony up another $5 million and get it going again. And tell them to put their cash in a real bank this time.)"


Just a crazy theory: some of the biggest players in SV are long on crypto and want traditional banks to keep failing?




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: