Paul Krugman says Silicon Valley Bank 'was a kind of affinity fraud a la Madoff' because it sold itself on false pretenses
Paul Krugman is taking issue with how Silicon Valley Bank portrayed itself to the tech startup world over the years, saying the lender relied on 'false pretenses' to gain clients' trust. , the Nobel Prize-winning economist argued that SVB calling itself the"the only bank dedicated to the global innovation sector" was a marketing tactic above all else.
"But it is infuriating. At a fundamental level, we're arguably talking about a kind of scam: a bank that sold itself on false pretenses. It's really part of the larger story of delusion marketing that includes crypto," he added. largest Ponzi scheme in history While SVB was a bank dedicated to startups, that's not where it made most of its money, Krugman said. The bank attracted its clients' deposits and parked them in long-term securities, an investment strategy that went very wrong.
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