President Carter, and Silicon Valley Bank. Also, 7 other things worth knowing today.
“I know I'm connecting some unusual dots here” - you write this almost apologetically, but it’s why I read your newsletter.
Although I used to be against bailouts now I temper that believe in what I hope is common sense. Now I believe bailouts are a good think. The bailout of the bank will help many small startups., where Silicon Valley is the corner stone of tech innovation. Better to help than to hinder. I also liked the New York City bailout. These lynchpin entities are to be to big to ignore. People make mistakes. I have a backup bailout in my bank to a smaller degree.. I’m pro small startups. Let’s hello them out
For the most part, the SVB problems are the result of investing excess deposits in government bonds which have been falling in value as interest rates rise.
Regrets on moving may be the result of rushing into something without enough research and living in the past. Missing something is allowing your focus to remain in the past which is long dead and gone.
Bill, great newsletter today. It made me think of other leaders’ talks in crisis - Winston Churchill, FDR. Leaders must rise to the occasion, rally people as to a possible fight ahead, and say we will get through it.
And we must remember the generations of Americans who “met the moment” in the Cuvil War, WW1 and 2. The Great Depression, the American Revolution. No doubt we’ll also face moments when our hearts tremble. But when we rally in unity the nation is incredibly strong. Hopefully we continue to do this.
I tried to access the SF Chronicle article and was greeted by a pay wall. Oh well, can't win 'em all.
According to Gallup, followers need from their leaders:
Carter certainly wasn't a Roosevelt. People want a Teddy to lead them up the hill or an FDR saying, "The only thing we have to fear is fear itself." Late yesterday they finally took the bull by the horns.
The best of the best, in any field, are masters of connecting the dots. They join what others can’t…or what others won’t.
A few comments on this bank thing:
The CEO sold his shares just a few weeks ago which, according to the SEC or Secret Service (I can't remember which), any executive member of a financial institution is not allowed to sell off their shares. There is a threshold that they must adhere to in order to prevent depositors from seeing it as trouble and cause a run on their bank.
Many people on staff received bonuses just a few weeks ago, when those in charge knew the shut down was looming. So it seems they protected their own before their customers. which leads me to the next comment.
This bank was FDIC insured. Doesn't that cover the depositors' money so the taxpayers don't have to bail them out?
Finally, we have a President who constantly tell us the economy is ok, the border is ok, homelessness is ok, everything is ok. Talk about a crisis of confidence. His numbers are in the toilet but his handlers have opted to keep him in the dark.
Well done today, Bill. Thanks.
You are most welcome. Methinks many folks aren’t aware it it.
I am appalled and worried that some gift bags at the Oscar Awards ceremony were valued at $126K. Does that mean the others were only in the 10s of thousands? WHY? There are horrendous problems in LA with homeless in the streets, gangs controlling significant parts of the city, yet these self-absorbed rich oligarchs thumb their noses at reality. Reminds me of the movie Hunger Games. Maybe the movie will mirror reality - revolution.
Thank you for today's article. President Carter was a true full man. I wish we could change where the center of government is, it seems that once the people we elect go the, they lose their ethics and promises made to the people who elected them. Maybe it's the water, the air or the wealth they seem to accumulate. We really need term limits and also not let the let any members of their profit from their decisions.
If you want to see someone handle a crisis of confidence and a bank run,
watch George Bailey handle the run on his savings and loan in Its a Wonderful Life. There is a leader.
Probably not going to be a good move to a new rental this year. And I call BS on Monsanto! So glad I don't live up in the corn and beans anymore!
Re: Moving regrets. Last year you mentioned a friend interviewing couples about moves for an AARP article he was writing. We chatted, and our story was included in his piece. We absolutely loved the home we built in the late ‘90’s near Madison WI. Our decision to sell it and buy an older lake house in northern WI and a bayside bungalow near Panama City made us snowbirds. We will always treasure the memories of our Madison home in the country. We sold it to the parents of the young couple next door. We had the joy of building on family land and got to live next to my parents until their passing, and thought it poetic that we could help two family generations (three, with their newborn) have the opportunity for a similar treasure. Regrets are a burden shed by finding the gifts and opportunities in the decisions we’ve made, instead of living in the past.