IDGAF about the morality of SVB's clients being able to make payroll or not.
But it strikes me that there's a second-order "too big to fail" effect at work here.
Not only bank runs. How many businesses who don't have any banking with SVB are operationally dependent on cloud services provided by SVB-banked companies?
What's curious is that this wasn't a risk in the 2000-2001 crash, and barely an emerging one in 2008.
Let's say 20% of cloud service providers can't make payroll and shut down. What does the disruption in the wider, real economy look like? Pretty messy, no?
But it strikes me that there's a second-order "too big to fail" effect at work here.
Not only bank runs. How many businesses who don't have any banking with SVB are operationally dependent on cloud services provided by SVB-banked companies?
What's curious is that this wasn't a risk in the 2000-2001 crash, and barely an emerging one in 2008.
Let's say 20% of cloud service providers can't make payroll and shut down. What does the disruption in the wider, real economy look like? Pretty messy, no?