Once all players internalize this idea, the debate shifts from "what should the public sector do?" to "which private-sector entity should the government pay to do this?" Anyone who says, "Wait, why doesn't the *government* just do this?" just gets blank stares.

We can see this in the cramped and inadequate debate over the #SVB #bailout; apologists for the bailout insist that it was necessary.

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But there's even better evidence that the bailout's intended target was wealthy, powerful people, and every chance to carve out working people was seized upon. When regulators engineered the sale of #SVB to First Citizens Bank, they did not require First Citizens to honor SVB's community development obligations, killing thousands of affordable housing units that had been previously greenlit:

https://calreinvest.org/wp-content/uploads/2021/05/Community-Benefits-Plan-SVB-CRC-GLI.pdf

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That's what makes the decision to bail out #SVB so distressing for finance law scholars like Levitin: they understand their law to be grounded in *prudence* and the #SVB bailout is so *reckless*. That's why Levitin calls the SVB bailout "banking law's *Dobbs* moment."

SVB is a bank that increased executive compensation in lockstep with the recklessness of their management, doubling CEO Greg Becker's bonuses as he decreased the bank's reliability:

https://www.ft.com/content/02ff2860-2d5b-4e21-96af-cef596bff58e

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Marty's final adventure involves dodgy banks, crooked crypto, and complicit officials in a fallen paradise where computers' libertory promise has been sucked dry by billionaire vampires.

It's a pretty contemporary story, in other words.

I wrote this one before #SVB, before #SamBankmanFried and #FTX - just like I wrote #LittleBrother before #Snowden's revelations.

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The potential fallout from #SVB et al just keeps getter larger by the day!

The latest headline is "US Officials Reportedly Studying Ways to Guarantee Bank Deposits of $17 Trillion amid Crisis"

https://www.coinspeaker.com/us-guarantee-bank-deposits-17-trillion/

This would be every deposited dollar in the country. Of course, it's already insured up to a quarter million dollars per account, so this change would only benefit people with more than that who also didn't split it up into separate accounts.

The self-styled "angel investor" who spent the weekend of #SVB's collapse all-caps tweeting dire warnings about the impact on "the middle class" and "Main Street" also gleefully DM'ed Elon Musk in the runup to his takeover of Twitter:

> Day zero

> Sharpen your blades boys

> 2 day a week Office requirement = 20% voluntary departures.

https://newsletter.mollywhite.net/p/the-venture-capitalists-dilemma

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