The people and small businesses who deposited money must be protected so this contagion doesn't spread

David Sacks says unlike the 2008 bailouts, Silicon Valley Bank stockholders, bondholders, and executive stock options should be wiped out, but the people and small businesses who deposited money must be protected so this contagion doesn't spread:

"Blaming the depositors in this situation is like blaming the patient in a medical malpractice situation because they didn't do a good enough job shopping for a doctor...

The only reason people are stubborn about this point is because Silicon Valley Bank has Silicon Valley in the name. If this was Farmers Bank, and it was 40,000 small business farms on the hook, everybody would understand, and the arguments being made would be we can't let 40,000 farms go out of business.

They didn't do anything wrong; they just trusted that when they put their money in a bank that it was safe, they didn't understand themselves to be making an unsecured loan to that bank. Are you kidding? They didn't engage in investment activity — they just wanted a checking account."

https://twitter.com/KanekoaTheGreat/status/1635034986243063808

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