Bailing out SVB Would Be Enabling Bad Behavior
Bailing out SVB Would Be Enabling Bad Behavior
The more we enable, the worse it will get
Democrats desire to coddle people, which is basically enabling them to continue on in their destructive behaviors. That’s not helping them. It’s not loving. But you know that if you say we shouldn’t coddle people or enable their bad behavior, you will be labeled “insensitive” or “cruel.”
I could be saying this about any issue the Democrats want to “save” their perceived “victims” of. But today I am thinking about Silicon Valley Bank (SVB) and I have not heard if certain politicians want to bail out the bank. I know Republicans may want to bail out the bank too. Could this be another of those beliefs that the uni party shares?
Time will tell. I don’t want to get too political or detailed here. I just wanted to share my thoughts about coddling. I’ve previously written about how the left hates the idea of “survival of the fittest.” They basically want everyone on the same level. Getting “equity” requires taking from the haves and giving to the have-nots. It means stealing from those who excel to prop up (or coddle) those whose own destructive habits keep them from excelling.
We condescend down to others when we say that they are “have-nots” and can’t succeed on their own merits and with a bit of effort. We enable them by giving them what we think they need but can’t produce. We try to give people fish over and over rather than teaching them to fish so they can make it on their own. It’s a co-dependent relationship.
Silicon Valley Bank
Forgive me if I am misunderstanding something or have heard bad information. The comment section will be open. If I’ve made some error you can correct me.
My understanding is that the bank kept money over the insured amount. Then there was a bank run and they weren’t able to cover it and their insurance won’t cover much of it.
To keep such a large amount uninsured was a poor decision, obviously. At some point, they thought it was a wise decision. They obviously thought it was worth the risk. They made an error in judgment. The way the world is supposed to work is that when people make bad decisions they face the consequences of those decisions. When you see you’ve made a mistake, you start over with new knowledge and make better decisions. You become more resilient.
In order to succeed in this world, first you make a bunch of mistakes. You find out what doesn’t work and through fixing those things you make a better product or become successful at providing a service.
If you make a bunch of mistakes and people keep helping you out of a jam each time, you never fix those mistakes and you basically stagnate. You will never grow or get better if you are being coddled. People simply enabling your poor techniques just keep you down from ever becoming confident in yourself to grow and learn and achieve something on your own.
The reason the fallout is this bad is that we’ve been bailed out and coddled before. People who have been coddled feel emboldened to take bigger risks because they always feel like someone will be there to bail them out of a jam. Yes, someone can bail them out this time, but next time the fallout will be even worse because they won’t learn their lesson and fix their mistakes.
At some point, we have to realize that coddling people and businesses is making them fragile and emboldened to continue on and eventually crash when reality hits. It’s not helping.
The poor people
I know there is a lot of empathy going out to the poor people who didn’t know this was happening behind the scenes. But, they choose poorly too. Life is going to be rough for people if they won’t learn to make better choices, like researching what bank the business is using, and researching what policies the bank has.
One red flag could be that “Silicon Valley Bank Employees Made Large Donations to Biden and Other Democrats” and anyone involved in ESG is a red flag also. To be honest, the ESG portion is probably the biggest red flag there is.
Here is a reply to that post:
Right. A mistake was made, and now we are learning what we need to do going forward to make better decisions. Now business schools can teach to be wary of businesses that support ESG. Oh, they won’t? The schools aren’t doing too well themselves. They’re part of the reason people are more fragile and less resilient.
Read the Article on Daily Mail
Here’s another tweet thread I found, from January, on mistakes SVB made:
SVB was weak. Anyone who calculates the worth of a business by their ESG and DEI scores/departments/charities is making a risky decision. We need to judge people and businesses by their merits, the content of their characters, and what they produce. Are their actions sustainable or are they relying on others to prop them up?
I may be seen as unsympathetic, but I’m not. It sucks that we have coddled people and had our markets bailed out and controlled by the government for so long that businesses and people feel so emboldened to make such large risks with no thought to what might happen to them later because they figure they’ll be bailed out by the government (actually their fellow taxpayers).
Don’t forget if there is a bailout it’s basically stealing money from other people who were not responsible to help those who had responsibility for losing it in the first place. Are they not the true victims? Why should they pay?
Loving people is wanting them to become resilient and grow to become more capable and thrive. Loving people is not wanting innocent people to have their money stolen to protect people who take such large risks.
Most people want the best for others, but I truly believe people have been duped into thinking coddling and enabling bad behaviors is best for others. It’s not. Sometimes you got to be "cruel" to be kind. The best teachers can be seen as cold-hearted because they want you to be the best you can be. Reality is the best teacher we have.
Our government struggles against reality every single day with all of the bailouts and subsidies, et al. We try so hard to control the uncontrollable rather than control ourselves by fixing our mistakes and growing. We should accept reality, learn from our mistakes, and grow with reality rather than fight the current of something we can’t stop.
Excellent points. The whole concept of expecting bailouts enables banks to take risks without any risk - a recipe for disaster.
The management and owners of the bank should pay for their foolish management. There should be no bail out. The FDIC protects investors up to $250,000. So the only people being hurt are those that had deposits of greater than $250,000 total. If you are that wealthy, then you have a responsibility to be aware of the risks of where your money is. This isn't the same as "mom and pop" doing routine banking at their local bank. Our government (the FDIC) system assures "mom and pop" that they are okay and not at risk (and thus don't have the burden of worrying if their $10,000 is safe in their local bank).
It's not like this hasn't happened before. This isn't a "surprise".