Reply To: Backstop everything

AAQ: That would make sense given that there may be a higher Democratic representation in the VC sector. So far, however, there seems to be fairly bipartisan support for the bailout with little concern for the “moral hazard” fallout which is the real long-term downside Market participants take greater risks with the expectation there will be a government backstop in case things go bad. In contrast to black swan events, SVB seems to have been entirely preventable and the outcome of poor risk management.