The CEO of Tesla, a multibillionaire, claimed that the current financial structure is ineffective. Despite attempts to save institutions that are exhibiting indications of fragility, the crisis of confidence in the banking sector keeps getting worse.
After a run by depositors fearful of losing all their money in the case of bankruptcy, Silicon Valley Bank, (SIVB) – Get Free Report, collapsed on March 10. Silicon Valley Bank was a prominent participant in financing tech and biotech companies as well as small businesses. To prevent the spread of the local catastrophe, the regulators closed the bank.
Elon Musk Tweet
One proposal that has been floated is for the FDIC to guarantee all deposits made to US banks. Entrepreneur Elon Musk believes that the failure of the recently announced extraordinary measures is evidence of the inefficiency of the current financial system. In a post on Twitter, the CEO of Tesla (TSLA) – Get Free Report stated as much.
On March 17, he revealed in a coded message, “The inefficiency of the group of heterogeneous resource allocation databases we call money is stunning.
Without going into further detail, he made a comment in response to a lengthy tweet from financier Bill Ackman criticizing the First Republic rescue plan because, in his opinion, it extended the bank’s risk to the major banks.
What an effective system might look like is not specified by Musk. He might be implying that having a system with various entry and exit points would be more difficult than having a central location where clients can deposit and withdraw money. One can argue that the chance of failure increases with the number of points of access and exit.
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Tycoon Mocks 200 Fired Twitter Employees
Meanwhile, Elon Musk appeared to make a crude joke about the hundreds of Twitter employees he recently laid off.
After news that up to 200 more staff at the social media network had been let go just months after he took over, the tech mogul tweeted something cryptic on Sunday.
“I hope you enjoy your Sunday. Your life’s first day of the rest of it,” he wrote.
On Sunday, a number of media sources reported that as Mr. Musk struggles to right the ship, between 50 and 200 users had been kicked off the unstable social network.
The number was estimated by the New York Times to be approximately 200, or about 10% of the remaining 2,000 employees of the company, while Silicon Valley insiders’ news site The Information reported it was at least 50.
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