I think that there are two types of trust at stake here:
1. Trust that bank deposits won't disappear.
2. Trust that the financial system is fair.
A bailout sacrifices 2 for 1.
Letting SVB fail sacrifices 1 for 2.
My proposal is for a bailout, while doing the bare minimum necessary to prevent a backlash. Remember that the death penalty still gets the thumbs-up from voters in many places in America. It's foolish to think that the people who distrust Silicon Valley will be able to "move past this" in a mature, dispassionate way, given the namesake of the bank.
1. Trust that bank deposits won't disappear.
2. Trust that the financial system is fair.
A bailout sacrifices 2 for 1.
Letting SVB fail sacrifices 1 for 2.
My proposal is for a bailout, while doing the bare minimum necessary to prevent a backlash. Remember that the death penalty still gets the thumbs-up from voters in many places in America. It's foolish to think that the people who distrust Silicon Valley will be able to "move past this" in a mature, dispassionate way, given the namesake of the bank.