SVB equals bailout for ‘favored class,’ Xi’s Silicon Valley opportunity and other commentary


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Republican: SVB = Bailout for ‘Favored Class’

When Treasury Secretary Janet Yellen “announced that all tech companies who deposited funds” at Silicon Valley Bank, thunders Vivek Ramaswamy at Newsweek, “would be made whole, the federal government sent a clear message to the American people: There are alternative rules if you are part of the favored class.” After all, “The normal rules of the road are clear: The first $250,000 is insured by FDIC. After that, the customer is liable for loss. But Silicon Valley wanted a different set of rules for itself” — and got them, via “bogus” arguments amounting to “raw self-interest masquerading as altruistic concern for the country,” since “venture investors could easily infuse fresh equity capital to make up for any balance-sheet losses.” Fact is: “It’s a bailout, pure and simple.”

China watch: Xi’s Silicon Valley Opportunity 

“China loves a fire sale,” note Emily de La Bruyère and Nathan Picarsic at The Hill — witness its actions in the 2008 financial crisis, when it bought up US equities at a deep discount. Post-SVB bailout, “there’s nothing to prevent China from gaining closer proximity” to “critical and foundational emerging technology” because “the dominant banking partner of the American tech ecosystem has vanished overnight.” So “the U.S. should be wary of China sweeping into the vacuum.” Such “efforts, if successful, will feed directly into China’s military modernization program and tech-enabled surveillance state.” “Let’s not let China define the period ahead. Instead, let’s treat this moment as a warning that underscores the strategic importance of private market capital flows. And let’s treat them as a competitive domain.”

Pandemic journal: Ignore the Wuhan Market Hype

A “breathless piece” in The Atlantic claims there’s “new evidence” COVID started in a Wuhan seafood market, but it “fails to clear the first hurdle,” scoffs Matt Ridley at The Spectator. It says raccoon dogs illegally sold there “could have been carrying and possibly shedding the virus” at 2019’s end. “Notice,” says Ridley, “‘could have,’ that old fallback of hype and spin.” We’ve know for years the market sold raccoon dogs, and Chinese scientists “found the virus in sixty-four places in the market” — “in every case” the virus’ “human form.” This is just the latest in a “bizarre trend in which a small group of western virologists with ready access to the media” are “desperate not to concede the pandemic might have begun in a virology laboratory.”

From the right: The Stakes in Chicago’s Runoff

The Chicago Teachers Union has thrown “its feverish support to progressive candidate Brandon Johnson” in the city’s April 4 mayoral runoff, warn The Wall Street Journal’s editors. “The CTU and its political action committee have given Mr. Johnson more than $2 million and even dipped into the pot of individual teachers dues to give him an extra boost” since: “If the union can get Mr. Johnson to City Hall, it will sit on both sides of the negotiating table,” and its sinking public-approval ratings won’t matter. Meanwhile, “Some 83% of Chicago students graduate from high school but less than a third are proficient in reading or math on the Scholastic Aptitude Test.”

Gadfly: Bank Failures Show Elite Madness

“The new capitalists were supposed to be different,” muses Spiked’s Fraser Myers, but the “collapse of the Silicon Valley Bank (SVB) ought to shatter these illusions, once and for all.” SVB “had more money than it had places to put it.” Why? “Easy money has created a tech scene built less on genuine innovation or consumer benefit than on hype, bluffing and bulls–t” so “many lavishly funded Silicon Valley ventures are just downright daft.” “Even some of Big Tech’s most popular apps, like Uber and Deliveroo, are built on financial sand.” “In the fall of SVB, we see the delusions of the elites coming home to roost. The Silicon Valley dream, sold on hype and sustained by easy money, has turned into a nightmare.” 

— Compiled by The Post Editorial Board

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