This week, we asked the Invstr Community a tough question regarding whether the government should have stepped in to cover all deposits over $250K at Silicon Valley Bank. There really is no wrong answer here, but the winner by the slimmest of margins was the 39 percent of Invstrs who believe that the government is justified as things could have gone worse. Many businesses had deposits above that level, along with citizens who had trust in these regional banks. Further data showed that regional banks like Silicon Valley Bank provided services to consumers who couldn’t get it at large banks, whether it was racially or financially motivated. If a government bailout did not occur, all these entities would have lost their wealth, possibly creating a financial crisis for too many Americans, which warrants the vote for this option.
Not too far behind are the 37 percent of Invstrs who believe that the government should not have stepped in because it is not their job. Government bailouts are often frowned upon because it was the mismanagement of the bank itself that caused this problem, and bailouts prevent progress from being made to fix those structural problems. Those who oppose bailouts often argue that the banks understand they are too important for the government to let them sink, causing these types of crises. It is also viewed as immoral due to the public funding that is used to execute these bailouts, hurting the public to save the bank. Considering how polarizing the issue is, this is a reasonable second place vote right behind the gold medalist.
Outside the podium, we have the 24 percent of Invstrs who don’t know whether the government should’ve stepped in or not. Bailouts are complex due to the moral issues on both sides, and there are valid points to support either side. Bank bailouts of this scale have not occurred since the 2008 recession, and it is definitely complex to compare today’s time to something of that scale. Deciding whether a bailout was the correct decision is often not reflected until later, making this a good option for third place.
Invstr’s banking services provide a great spot to keep your funds safe and sound! Have fun and see you next time with more poll results!
- The Invstr Team 🙂