wayne

[wayne @eskimosled]

@USDebtCoin Let’s go’

[wayne @eskimosled]

@AlderLaneEggs HELE! What’s happening there ?

[wayne @eskimosled]

@CodyWesterlund Bench him. Terrible +\-. Clearly not 💯. Obviously hurting the team

[wayne @eskimosled]

@ChartingProdigy can you explain why the market will bottom when fed pauses this summer? vs the start of further selling (dotcom, 08)

Is it due to QT starting when the market was already on the decline?

Or are you looking more at levels (3200) rather than timing?

[wayne @eskimosled]

@gurgavin I just bought some june 24 puts

[wayne @eskimosled]

@freddiesayers @DavidSacks SVB made huge uncollaterallized loans to startups w no positive net revenue. They then forced these startups to deposit these loans in SVB. So yes, a lot of these deposits are due to bad actions by SVB, so these startups should not get these deposits guaranteed by the fed

[wayne @eskimosled]

@GRDecter https://t.co/A2aHAlbRl9

[Jon Wu @jonwu_]

Say you're a founder (or VC) with a bunch of illiquid but sure-to-be-worth-something-someday startup equity or fund carry, and you need a house.

Typical mortgage lenders won't help you.

But SVB will, at the same insanely good terms they're known for in the venture debt world.

[Jon Wu @jonwu_]

What was done with those deposits is the source of SVB's troubles.

In an effort to chase yield and provide a decent return on equity, SVB bought billions of dollars of long-dated mortgage-backed securities paying ~1.6%.

https://t.co/xeBKy984MR

[Jon Wu @jonwu_]

The business model is therefore:

1) make cheap loans to elite startups and convince yourself they're definitely going to raise money again to pay you back
2) grow the capital base massively via deposit requirements connected to those loans
3) get some yield on those deposits

[Jon Wu @jonwu_]

That's why everyone in tech loved SVB:
- they're nice people who take you to nice dinners
- they'll help you buy a house
- they provide structurally underpriced capital at comically friendly terms ("just bank with us")

[Jon Wu @jonwu_]

Say you're a founder (or VC) with a bunch of illiquid but sure-to-be-worth-something-someday startup equity or fund carry, and you need a house.

Typical mortgage lenders won't help you.

But SVB will, at the same insanely good terms they're known for in the venture debt world.

[wayne @eskimosled]

@iamfine212 @StVincentGrad23 @nic_carter @TheStalwart Where did it go? Trying to find it

[wayne @eskimosled]

@GRDecter 💪

[wayne @eskimosled]

@balajis Why didn’t they hedge w interest rate swaps like any competent bond fund manager seems like a no brainer

[wayne @eskimosled]

@RyanSAdams Luna wasn’t

[wayne @eskimosled]

@BobLoukas People borrow money to buy btc …. Like any bubble

[wayne @eskimosled]

@GRDecter Why didn’t they simply enter into some Interest Rate swaps like any risk manager ?

[wayne @eskimosled]

@JCowleyHoops Hope this much needed public airing of the toxic on the floor chemistry that occurs when the bulls aren’t playing well offensively . Just demar w his blinders on and Zach doing hero ball. If they “just be pros” we crush teams by 20

[wayne @eskimosled]

@StephNoh Zack is a bottom 10 in the league in basketball IQ . Please write an article on the lowest IQ players in the nba ! @

[wayne @eskimosled]

@SandyFrizzle We just made one https://t.co/ISAqkPaqKZ