<?xml version="1.0" encoding="UTF-8"?>
<rss version="2.0" xmlns:atom="http://www.w3.org/2005/Atom" xmlns:dc="http://purl.org/dc/elements/1.1/">
  <channel>
    <title>DEV Community: khoubaib maamouri</title>
    <description>The latest articles on DEV Community by khoubaib maamouri (@khoubaibsudo).</description>
    <link>https://dev.to/khoubaibsudo</link>
    <image>
      <url>https://media2.dev.to/dynamic/image/width=90,height=90,fit=cover,gravity=auto,format=auto/https:%2F%2Fdev-to-uploads.s3.amazonaws.com%2Fuploads%2Fuser%2Fprofile_image%2F1044187%2F95b353f3-3c25-409e-8734-ad3f9b7b942a.png</url>
      <title>DEV Community: khoubaib maamouri</title>
      <link>https://dev.to/khoubaibsudo</link>
    </image>
    <atom:link rel="self" type="application/rss+xml" href="https://dev.to/feed/khoubaibsudo"/>
    <language>en</language>
    <item>
      <title>Navigating a Crisis: Seeking Opportunities and Support as a Software Engineer</title>
      <dc:creator>khoubaib maamouri</dc:creator>
      <pubDate>Fri, 26 Jul 2024 10:45:51 +0000</pubDate>
      <link>https://dev.to/khoubaibsudo/navigating-a-crisis-seeking-opportunities-and-support-as-a-software-engineer-1h5j</link>
      <guid>https://dev.to/khoubaibsudo/navigating-a-crisis-seeking-opportunities-and-support-as-a-software-engineer-1h5j</guid>
      <description>&lt;p&gt;I'm currently facing a difficult situation and I need your help. I recently lost my job, which was terminated during the probationary period on June 30, 2024. Since then, I have been actively seeking new employment but have not succeeded. My application for financial support from the Jobcentre was denied due to my current residence permit status under § 18b AufenthG, which disqualifies me from receiving benefits. The Migration Office has informed me that my only option is to find a new job, but this is proving extremely difficult, especially given my financial situation. I have exhausted all my savings and no longer have any money to buy food or pay my rent. I am a software engineer with skills in various areas of IT and am willing to do any work in this field. I am facing the very real prospect of homelessness and extreme hardship. If anyone has experienced a similar issue or knows of any solutions, resources, or organizations that could provide assistance, please reach out. Your advice and support would be greatly appreciated during this challenging time. Thank you!&lt;/p&gt;

</description>
      <category>jobseeking</category>
      <category>germany</category>
      <category>support</category>
      <category>careeradvice</category>
    </item>
    <item>
      <title>Is TypeScript Losing Ground? A Look at Recent Library Decisions</title>
      <dc:creator>khoubaib maamouri</dc:creator>
      <pubDate>Mon, 18 Sep 2023 09:25:23 +0000</pubDate>
      <link>https://dev.to/khoubaibsudo/is-typescript-losing-ground-a-look-at-recent-library-decisions-1pfh</link>
      <guid>https://dev.to/khoubaibsudo/is-typescript-losing-ground-a-look-at-recent-library-decisions-1pfh</guid>
      <description>&lt;p&gt;&lt;em&gt;Subtitle: Exploring the surprising trend of major libraries ditching TypeScript&lt;/em&gt;&lt;/p&gt;




&lt;p&gt;In the ever-evolving world of programming, adaptability is key. Even legendary JavaScript guru Kent C. Dodds once remarked, "I don't use TypeScript, so I don't ever plan on supporting it." Fast forward to 2023, and TypeScript seems to have won the battle for supremacy in the JavaScript ecosystem. However, recent developments have raised questions about its enduring dominance.&lt;/p&gt;

&lt;p&gt;&lt;a href="https://res.cloudinary.com/practicaldev/image/fetch/s--Dgf1iy6B--/c_limit%2Cf_auto%2Cfl_progressive%2Cq_auto%2Cw_800/https://dev-to-uploads.s3.amazonaws.com/uploads/articles/juk6uq100y086atvk6h5.png" class="article-body-image-wrapper"&gt;&lt;img src="https://res.cloudinary.com/practicaldev/image/fetch/s--Dgf1iy6B--/c_limit%2Cf_auto%2Cfl_progressive%2Cq_auto%2Cw_800/https://dev-to-uploads.s3.amazonaws.com/uploads/articles/juk6uq100y086atvk6h5.png" alt="Kent C. Dodds tweet" width="800" height="217"&gt;&lt;/a&gt;&lt;/p&gt;

&lt;h2&gt;
  
  
  TypeScript's Rise to Prominence
&lt;/h2&gt;

&lt;p&gt;To understand the recent controversy surrounding TypeScript, we need to rewind to 2012 when Microsoft introduced TypeScript. Initially, it didn't garner much attention, but it gained traction when the Angular 2 framework adopted it, causing many to raise eyebrows. As the 2020s dawned, TypeScript had permeated virtually every corner of the JavaScript landscape, converting its harshest critics into ardent supporters.&lt;/p&gt;

&lt;p&gt;But as TypeScript was poised to achieve ubiquity, a surprising shift occurred. Several prominent open-source projects, including Svelte, Drizzle, and Turbo, made a bold decision: they were ditching TypeScript in favor of vanilla JavaScript. What prompted these influential libraries to make such a U-turn?&lt;/p&gt;

&lt;h2&gt;
  
  
  DHH's Take on TypeScript
&lt;/h2&gt;

&lt;p&gt;One notable voice in this conversation is David Heinemeier Hansson (DHH), the creator of Ruby on Rails. DHH and the team behind Turbo version 8 recently announced their departure from TypeScript. Their main grievance wasn't the compilation step but the clutter it introduced into the codebase, what DHH referred to as "type gymnastics."&lt;/p&gt;

&lt;p&gt;&lt;a href="https://res.cloudinary.com/practicaldev/image/fetch/s--AejgH_4l--/c_limit%2Cf_auto%2Cfl_progressive%2Cq_auto%2Cw_800/https://dev-to-uploads.s3.amazonaws.com/uploads/articles/eg9vxwote5oydxpsulv7.jpg" class="article-body-image-wrapper"&gt;&lt;img src="https://res.cloudinary.com/practicaldev/image/fetch/s--AejgH_4l--/c_limit%2Cf_auto%2Cfl_progressive%2Cq_auto%2Cw_800/https://dev-to-uploads.s3.amazonaws.com/uploads/articles/eg9vxwote5oydxpsulv7.jpg" alt="DHH" width="800" height="533"&gt;&lt;/a&gt;&lt;/p&gt;

&lt;h3&gt;
  
  
  DHH Explains:
&lt;/h3&gt;

&lt;blockquote&gt;
&lt;p&gt;"TypeScript pollutes the code with type gymnastics."&lt;/p&gt;
&lt;/blockquote&gt;

&lt;p&gt;As library maintainers, they found that TypeScript introduced overhead, forcing them to navigate intricate type hierarchies. This sentiment resonates with developers who've had to wrangle TypeScript's strict mode for the sake of type inference. The trade-off between code cleanliness and type strictness was a difficult one.&lt;/p&gt;

&lt;h2&gt;
  
  
  Svelte's Pragmatic Approach
&lt;/h2&gt;

&lt;p&gt;On the other hand, the Svelte team decided to drop TypeScript for more practical reasons. Rich Harris, the creator of Svelte, shared insights into this decision. With Svelte 5 (or perhaps a future Svelte 5+ version), TypeScript has been replaced by vanilla JavaScript. Their rationale? Increased productivity, thanks to the elimination of the compilation step.&lt;/p&gt;

&lt;h3&gt;
  
  
  Rich Harris Explains:
&lt;/h3&gt;

&lt;blockquote&gt;
&lt;p&gt;"No compile step is a huge boost in productivity."&lt;/p&gt;
&lt;/blockquote&gt;

&lt;p&gt;Svelte's approach is unique. While TypeScript is no longer a core part of their development, they leverage JSDoc comments to provide type annotations and documentation, effectively delivering TypeScript-like benefits while retaining the simplicity of JavaScript.&lt;/p&gt;

&lt;h2&gt;
  
  
  The Future of TypeScript
&lt;/h2&gt;

&lt;p&gt;So, where does this leave TypeScript enthusiasts? Should we consider returning to vanilla JavaScript? For building applications with tools like Svelte Kit or Next.js, TypeScript's integration remains seamless and efficient. Transitioning to JavaScript documentation comments (JSdoc) might prove cumbersome.&lt;/p&gt;

&lt;p&gt;Yet, there's a glimmer of hope on the horizon. An ECMAScript proposal in Stage 1 suggests adding optional type annotations to JavaScript natively. If this proposal becomes a reality, it could render TypeScript nearly obsolete, simplifying the ongoing TypeScript vs. JavaScript debate.&lt;/p&gt;

&lt;p&gt;In conclusion, the recent decisions of major libraries to part ways with TypeScript might be indicative of a larger shift in the JavaScript landscape. While TypeScript remains a robust choice for many developers and projects, we should keep an eye on the evolving JavaScript standards, as they might provide an alternative path forward.&lt;/p&gt;

&lt;p&gt;As we navigate the ever-changing world of JavaScript development, one thing remains certain: staying open-minded and adaptable is the hallmark of a great developer.&lt;/p&gt;

</description>
      <category>webdev</category>
      <category>typescript</category>
      <category>javascript</category>
      <category>programming</category>
    </item>
    <item>
      <title>What Actually Happened to Faker.js: Open Source Contribution Lessons</title>
      <dc:creator>khoubaib maamouri</dc:creator>
      <pubDate>Thu, 23 Mar 2023 14:32:29 +0000</pubDate>
      <link>https://dev.to/khoubaibsudo/what-actually-happened-to-fakerjs-open-source-contribution-lessons-4n8n</link>
      <guid>https://dev.to/khoubaibsudo/what-actually-happened-to-fakerjs-open-source-contribution-lessons-4n8n</guid>
      <description>&lt;p&gt;Open source libraries are frequently used by developers to facilitate their work. Faker.js is a well-known tool for creating random fake data that is used in demonstrations and applications. But a recent problem with the library raised some concerns about the ethics of utilizing open source contributions and their sustainability.&lt;/p&gt;

&lt;p&gt;&lt;strong&gt;The Issue with faker.js&lt;/strong&gt;&lt;/p&gt;

&lt;p&gt;The most recent version of faker.js was attempted to be used by an experienced developer, however an unexpected error message was received. They looked into it and found that the source code was gone from the GitHub repository, with just one commit that said "end game" left. The only statement in the README file was "What really Happened to Aaron Swartz."&lt;/p&gt;

&lt;p&gt;&lt;a href="https://media.dev.to/dynamic/image/width=800%2Cheight=%2Cfit=scale-down%2Cgravity=auto%2Cformat=auto/https%3A%2F%2Fdev-to-uploads.s3.amazonaws.com%2Fuploads%2Farticles%2Fg2uob3q139q9l2st9bfn.png" class="article-body-image-wrapper"&gt;&lt;img src="https://media.dev.to/dynamic/image/width=800%2Cheight=%2Cfit=scale-down%2Cgravity=auto%2Cformat=auto/https%3A%2F%2Fdev-to-uploads.s3.amazonaws.com%2Fuploads%2Farticles%2Fg2uob3q139q9l2st9bfn.png" alt="README "&gt;&lt;/a&gt;&lt;/p&gt;

&lt;p&gt;&lt;strong&gt;The Tragic Story of Aaron Swartz&lt;/strong&gt;&lt;/p&gt;

&lt;p&gt;If you're not aware with Aaron Swartz, he was a web development pioneer who made substantial contributions to the development of Reddit, the Markdown format, RSS, and Creative Commons. Unfortunately, his legacy was short-lived when, in 2013, he committed suicide after being accused of federal offenses connected to his work to increase public access to academic research.&lt;/p&gt;

&lt;p&gt;&lt;a href="https://media.dev.to/dynamic/image/width=800%2Cheight=%2Cfit=scale-down%2Cgravity=auto%2Cformat=auto/https%3A%2F%2Fdev-to-uploads.s3.amazonaws.com%2Fuploads%2Farticles%2Fp1jiscjoishhmefpz3bw.png" class="article-body-image-wrapper"&gt;&lt;img src="https://media.dev.to/dynamic/image/width=800%2Cheight=%2Cfit=scale-down%2Cgravity=auto%2Cformat=auto/https%3A%2F%2Fdev-to-uploads.s3.amazonaws.com%2Fuploads%2Farticles%2Fp1jiscjoishhmefpz3bw.png" alt="Aaron Swartz"&gt;&lt;/a&gt;&lt;/p&gt;

&lt;p&gt;Swartz downloaded several academic papers from JSTOR, a digital repository that demanded access fees, because he thought information should be freely available. In the end, his untimely death was caused by the accusations against him and the accompanying court dispute.&lt;/p&gt;

&lt;p&gt;&lt;a href="https://media.dev.to/dynamic/image/width=800%2Cheight=%2Cfit=scale-down%2Cgravity=auto%2Cformat=auto/https%3A%2F%2Fdev-to-uploads.s3.amazonaws.com%2Fuploads%2Farticles%2F9kus8k2ywz3cqiki09pp.png" class="article-body-image-wrapper"&gt;&lt;img src="https://media.dev.to/dynamic/image/width=800%2Cheight=%2Cfit=scale-down%2Cgravity=auto%2Cformat=auto/https%3A%2F%2Fdev-to-uploads.s3.amazonaws.com%2Fuploads%2Farticles%2F9kus8k2ywz3cqiki09pp.png" alt="JSTOR"&gt;&lt;/a&gt;&lt;/p&gt;

&lt;p&gt;&lt;strong&gt;Open Source Contributions and Compensation&lt;/strong&gt;&lt;/p&gt;

&lt;p&gt;Back to the faker.js problem and the "end game" commit, it was found that the library's maintainer had made a critical choice. According to them, they no longer wanted to support Fortune 500 businesses that did not provide fair compensation. This choice triggered a discussion regarding the morality of utilizing contributions to open source software and the requirement to pay developers.&lt;/p&gt;

&lt;p&gt;&lt;a href="https://media.dev.to/dynamic/image/width=800%2Cheight=%2Cfit=scale-down%2Cgravity=auto%2Cformat=auto/https%3A%2F%2Fdev-to-uploads.s3.amazonaws.com%2Fuploads%2Farticles%2F4y9376qb3n76t7rtl5t5.png" class="article-body-image-wrapper"&gt;&lt;img src="https://media.dev.to/dynamic/image/width=800%2Cheight=%2Cfit=scale-down%2Cgravity=auto%2Cformat=auto/https%3A%2F%2Fdev-to-uploads.s3.amazonaws.com%2Fuploads%2Farticles%2F4y9376qb3n76t7rtl5t5.png" alt="Fortune "&gt;&lt;/a&gt;&lt;/p&gt;

&lt;p&gt;While open source contributions are crucial to the software's progress, it is important to remember that engineers need fair pay for their labor. Many open source contributors receive far less compensation than what their efforts are worth. The fact is that open source requires a solid business model or enough compensation for the developers in order to be financially sustainable.&lt;/p&gt;

&lt;p&gt;Regrettably, a lot of businesses, consulting firms, and startups profit greatly from open source software without paying the creators anything. Even worse, some businesses exploit and steal code without adhering to the proper open-source licensing guidelines.&lt;/p&gt;

&lt;p&gt;&lt;strong&gt;A New Era of Open Source?&lt;/strong&gt;&lt;/p&gt;

&lt;p&gt;The fact is that for open source to be feasible, a sound business plan or a comfortable salary is necessary to make it worthwhile. However, even that may not be sufficient, as evidenced by the adoption of more restrictive open source licenses by big companies like mongodb and elasticsearch, which prevent commercial services like Amazon Web Services from using their software. Perhaps independent open source developers should follow suit. It's unclear whether Bitcoin offers a solution, but I welcome your thoughts in the comments. Nevertheless, if you're working on a library for years with a high number of downloads, like Vue.js, and barely making any money, you may end up making the tough decision to stop contributing altogether.&lt;/p&gt;

</description>
      <category>opensource</category>
      <category>faker</category>
      <category>javascript</category>
      <category>story</category>
    </item>
    <item>
      <title>The Rise of Generative AI Models and Their Impact on Creativity</title>
      <dc:creator>khoubaib maamouri</dc:creator>
      <pubDate>Thu, 16 Mar 2023 21:50:55 +0000</pubDate>
      <link>https://dev.to/khoubaibsudo/the-rise-of-generative-ai-models-and-their-impact-on-creativity-46jb</link>
      <guid>https://dev.to/khoubaibsudo/the-rise-of-generative-ai-models-and-their-impact-on-creativity-46jb</guid>
      <description>&lt;p&gt;On March 16, 2023, Mid-Journey released its version 5 model , offering images that are shockingly realistic. thanks to generative AI models that can create them in all shapes and sizes, making it impossible to tell the difference between genuine models and AI-generated ones, unless you look really closely at the fingers.&lt;/p&gt;

&lt;p&gt;&lt;strong&gt;The Future of Generative Image Models&lt;/strong&gt;&lt;/p&gt;

&lt;p&gt;&lt;a href="https://res.cloudinary.com/practicaldev/image/fetch/s--aZ9EvyYz--/c_limit%2Cf_auto%2Cfl_progressive%2Cq_auto%2Cw_800/https://dev-to-uploads.s3.amazonaws.com/uploads/articles/jz452eaml6zal5ksgtct.png" class="article-body-image-wrapper"&gt;&lt;img src="https://res.cloudinary.com/practicaldev/image/fetch/s--aZ9EvyYz--/c_limit%2Cf_auto%2Cfl_progressive%2Cq_auto%2Cw_800/https://dev-to-uploads.s3.amazonaws.com/uploads/articles/jz452eaml6zal5ksgtct.png" alt="The Future of Generative Image Models" width="800" height="800"&gt;&lt;/a&gt;&lt;/p&gt;

&lt;p&gt;Various companies and open-source projects are competing to be the best generative image model in 2023. Stable Diffusion leads the open-source project initiative, while closed-source projects such as dell a 2 from Open AI compete to monetize this space. However, in my opinion, Mid-Journey is the most impressive, thanks to its vibrant, realistic, and aesthetically pleasing images. The data set for Mid-Journey's black magic comes from unwitting photographers and artists who have helped hone the algorithm to perfection.&lt;/p&gt;

&lt;p&gt;&lt;a href="https://res.cloudinary.com/practicaldev/image/fetch/s--WLfW-RQ1--/c_limit%2Cf_auto%2Cfl_progressive%2Cq_auto%2Cw_800/https://dev-to-uploads.s3.amazonaws.com/uploads/articles/7gl6i2lnfl5pt51lij66.png" class="article-body-image-wrapper"&gt;&lt;img src="https://res.cloudinary.com/practicaldev/image/fetch/s--WLfW-RQ1--/c_limit%2Cf_auto%2Cfl_progressive%2Cq_auto%2Cw_800/https://dev-to-uploads.s3.amazonaws.com/uploads/articles/7gl6i2lnfl5pt51lij66.png" alt="US Copyright Office" width="653" height="431"&gt;&lt;/a&gt;&lt;/p&gt;

&lt;p&gt;It's interesting to note that the US Copyright Office has decided that generative AI art cannot be protected since there must be evidence of human authorship. It implies that con artists cannot simply use a ruse to license AI-generated artwork as copyrighted works. Yet, depending on the circumstances and after being changed by a human, AI art may occasionally qualify.&lt;/p&gt;

&lt;p&gt;&lt;strong&gt;The Implications for Creativity&lt;/strong&gt;&lt;/p&gt;

&lt;p&gt;&lt;a href="https://res.cloudinary.com/practicaldev/image/fetch/s--G-CITici--/c_limit%2Cf_auto%2Cfl_progressive%2Cq_auto%2Cw_800/https://dev-to-uploads.s3.amazonaws.com/uploads/articles/mhdhdqrwx2a74jntqu4g.png" class="article-body-image-wrapper"&gt;&lt;img src="https://res.cloudinary.com/practicaldev/image/fetch/s--G-CITici--/c_limit%2Cf_auto%2Cfl_progressive%2Cq_auto%2Cw_800/https://dev-to-uploads.s3.amazonaws.com/uploads/articles/mhdhdqrwx2a74jntqu4g.png" alt="Creativity" width="800" height="500"&gt;&lt;/a&gt;&lt;/p&gt;

&lt;p&gt;Instead of requiring artists to continuously produce new works, generative AI models enable users to make an endless number of versions of works already in existence. Due of a lack of motivation on the part of content producers to produce original pieces of art, this invention can kill creativity. What's the point if a business is going to copy it and remix it into so many different iterations that no one can identify the difference?&lt;/p&gt;

&lt;p&gt;&lt;a href="https://res.cloudinary.com/practicaldev/image/fetch/s--vJKL350z--/c_limit%2Cf_auto%2Cfl_progressive%2Cq_auto%2Cw_800/https://dev-to-uploads.s3.amazonaws.com/uploads/articles/k3wyjfc3cdt94il0l33t.png" class="article-body-image-wrapper"&gt;&lt;img src="https://res.cloudinary.com/practicaldev/image/fetch/s--vJKL350z--/c_limit%2Cf_auto%2Cfl_progressive%2Cq_auto%2Cw_800/https://dev-to-uploads.s3.amazonaws.com/uploads/articles/k3wyjfc3cdt94il0l33t.png" alt="create artwork" width="747" height="198"&gt;&lt;/a&gt;&lt;/p&gt;

&lt;p&gt;Some of these models, for instance, may create artwork or visuals based on anything you say, virtually acting as a prompt. The entire Mid-Journey paradigm is managed using Discord, which as of right present has no API. As soon as you're on Discord, enter the "/Imagine" command in the beginner channels, describe the image you want, and watch as the AI creates it.&lt;/p&gt;

&lt;p&gt;There are a variety of additional factors that users can adjust to alter the models' output, such as changing the aspect ratio to alter the contour of the image or chaos to produce particular random elements in the output of an image.&lt;/p&gt;

&lt;p&gt;&lt;strong&gt;The Hope for Digital Creators&lt;/strong&gt;&lt;/p&gt;

&lt;p&gt;&lt;a href="https://res.cloudinary.com/practicaldev/image/fetch/s--XbOFS_Dz--/c_limit%2Cf_auto%2Cfl_progressive%2Cq_auto%2Cw_800/https://dev-to-uploads.s3.amazonaws.com/uploads/articles/jgpnwnhg7ivk23n8g8r0.png" class="article-body-image-wrapper"&gt;&lt;img src="https://res.cloudinary.com/practicaldev/image/fetch/s--XbOFS_Dz--/c_limit%2Cf_auto%2Cfl_progressive%2Cq_auto%2Cw_800/https://dev-to-uploads.s3.amazonaws.com/uploads/articles/jgpnwnhg7ivk23n8g8r0.png" alt="Digital Creators" width="800" height="450"&gt;&lt;/a&gt;&lt;/p&gt;

&lt;p&gt;Generative AI models feel like a threat to digital creators, but there is a glimmer of hope. It's very possible that some existing art and images were created using AI. If you can't tell the difference between AI-generated and human-generated work, then what does it matter?...&lt;/p&gt;

</description>
      <category>midjourney</category>
      <category>ai</category>
      <category>generative</category>
      <category>creativity</category>
    </item>
    <item>
      <title>The Rise and Fall of Silicon Valley Bank: What It Means for Tech Startups</title>
      <dc:creator>khoubaib maamouri</dc:creator>
      <pubDate>Mon, 13 Mar 2023 11:03:12 +0000</pubDate>
      <link>https://dev.to/khoubaibsudo/the-rise-and-fall-of-silicon-valley-bank-what-it-means-for-tech-startups-3d59</link>
      <guid>https://dev.to/khoubaibsudo/the-rise-and-fall-of-silicon-valley-bank-what-it-means-for-tech-startups-3d59</guid>
      <description>&lt;p&gt;The failure of Silicon Valley Bank (svb), which has shocked the tech sector, is today's top story. Companies that had their money in svb are now concerned that their payments would bounce or that their employers might fail. Nevertheless, how valid are these worries? We'll look at what caused svb to fail, what it means for IT entrepreneurs, and what the future may hold in this blog article.&lt;/p&gt;

&lt;p&gt;&lt;strong&gt;The Tech Boom and Silicon Valley Bank&lt;/strong&gt;&lt;br&gt;
We saw a tech boom over the past ten years that was far more significant than the dot-com bubble. All you needed to secure an investment from a venture capital firm was the next big idea for a disruptive app since central banks were providing easy money and low interest rates. And Silicon Valley Bank is the best company to entrust your money with.&lt;/p&gt;

&lt;p&gt;&lt;a href="https://res.cloudinary.com/practicaldev/image/fetch/s--Lr0lL3DT--/c_limit%2Cf_auto%2Cfl_progressive%2Cq_auto%2Cw_800/https://dev-to-uploads.s3.amazonaws.com/uploads/articles/og8aabrl6ij9logf4hiv.png" class="article-body-image-wrapper"&gt;&lt;img src="https://res.cloudinary.com/practicaldev/image/fetch/s--Lr0lL3DT--/c_limit%2Cf_auto%2Cfl_progressive%2Cq_auto%2Cw_800/https://dev-to-uploads.s3.amazonaws.com/uploads/articles/og8aabrl6ij9logf4hiv.png" alt="The Tech Boom" width="800" height="534"&gt;&lt;/a&gt;&lt;/p&gt;

&lt;p&gt;When interest rates were low, things were wonderful for SVB. With over $175 billion in customer deposits, it rose to become the 16th largest bank in the US. They placed this money in bonds and mortgage-backed securities, generally with maturities of 10 years or longer, in order to earn a return. The issue is that bond values fall when interest rates rise, which resulted in a mismatch between assets and liabilities. When word spread about this, everyone began to panic and begin to withdraw their money from the bank in an Old-Fashioned rush.&lt;/p&gt;

&lt;p&gt;&lt;strong&gt;The Fallout&lt;/strong&gt;&lt;br&gt;
To reduce their losses, the government, which guarantees deposits up to $250,000, promptly intervened and closed the bank. You don't lose anything if you have less than $250,000 in this bank because it is completely insured. Yet, the majority of tech businesses probably have more money in the bank than that, and at least 85% of deposits were not insured. With that money, you might get a haircut. The scenario is still developing, and a number of different things could occur.&lt;/p&gt;

&lt;p&gt;&lt;a href="https://res.cloudinary.com/practicaldev/image/fetch/s--d2-3eBgm--/c_limit%2Cf_auto%2Cfl_progressive%2Cq_auto%2Cw_800/https://dev-to-uploads.s3.amazonaws.com/uploads/articles/rzciyfhhdymsvba4q7ik.jpg" class="article-body-image-wrapper"&gt;&lt;img src="https://res.cloudinary.com/practicaldev/image/fetch/s--d2-3eBgm--/c_limit%2Cf_auto%2Cfl_progressive%2Cq_auto%2Cw_800/https://dev-to-uploads.s3.amazonaws.com/uploads/articles/rzciyfhhdymsvba4q7ik.jpg" alt="The Fallout" width="416" height="273"&gt;&lt;/a&gt;&lt;/p&gt;

&lt;p&gt;A larger bank might pounce and buy svb, guaranteeing all of the deposits. If that fails, perhaps legislation will be drafted to steal funds from taxpayers to bail out these Internet firms, just as they did with the banks in 2008. If that doesn't succeed, though, the FDIC can simply sell off all of svb's assets and then distribute a future dividend to uninsured depositors. Shareholders will essentially lose everything, but depositors will recover the majority, if not the entirety, of their money. They were bailed in and now stand to lose everything.&lt;/p&gt;

&lt;p&gt;&lt;strong&gt;Contagion&lt;/strong&gt;&lt;br&gt;
The most intriguing aspect of this predicament, though, is how it can spread or what type of economic shocks it might cause for other Silicon Valley companies. Because more than $3 billion of its cash reserves were exposed to svb, USDCoin (USDC), one of the most popular stable coins in the cryptocurrency space, depegged as a result. Because these stable coins are essential to maintaining liquidity in the cryptocurrency markets, this is extremely terrible for the industry. There would be a ton of collateral harm if it were to completely collapse. Although Terra's UST collapse last year was not great, the collapse of USDC would be much worse.&lt;/p&gt;

&lt;p&gt;&lt;a href="https://res.cloudinary.com/practicaldev/image/fetch/s--Rg56BBu8--/c_limit%2Cf_auto%2Cfl_progressive%2Cq_auto%2Cw_800/https://dev-to-uploads.s3.amazonaws.com/uploads/articles/tnfb4aard8dfkb9gbvaz.png" class="article-body-image-wrapper"&gt;&lt;img src="https://res.cloudinary.com/practicaldev/image/fetch/s--Rg56BBu8--/c_limit%2Cf_auto%2Cfl_progressive%2Cq_auto%2Cw_800/https://dev-to-uploads.s3.amazonaws.com/uploads/articles/tnfb4aard8dfkb9gbvaz.png" alt="Contagion" width="800" height="453"&gt;&lt;/a&gt;&lt;/p&gt;

&lt;p&gt;You wonder if there are any other banks that are in a similar predicament as svb when it comes to contagion. It was particularly vulnerable to tech companies, but the main issue here is rising interest rates, and it's probable that other banks made such errors as well.&lt;/p&gt;

&lt;p&gt;&lt;strong&gt;How It Affects the Average Software Engineer?&lt;/strong&gt;&lt;br&gt;
Other smaller startups are claiming that they won't be able to pay their employees, which sounds bad but in reality they'll probably be able to find some kind of temporary solution to continue operating as normal until the FDIC figures things out. Many companies, like Roku and Roblox, have disclosed their exposure and should have no problem continuing their operations as normal.&lt;/p&gt;

&lt;p&gt;&lt;strong&gt;Longer term&lt;/strong&gt;&lt;/p&gt;

&lt;p&gt;&lt;a href="https://res.cloudinary.com/practicaldev/image/fetch/s--dLWJdcYE--/c_limit%2Cf_auto%2Cfl_progressive%2Cq_auto%2Cw_800/https://dev-to-uploads.s3.amazonaws.com/uploads/articles/5b8hgmq6l21iy6i12ka3.png" class="article-body-image-wrapper"&gt;&lt;img src="https://res.cloudinary.com/practicaldev/image/fetch/s--dLWJdcYE--/c_limit%2Cf_auto%2Cfl_progressive%2Cq_auto%2Cw_800/https://dev-to-uploads.s3.amazonaws.com/uploads/articles/5b8hgmq6l21iy6i12ka3.png" alt="no money" width="800" height="450"&gt;&lt;/a&gt;&lt;/p&gt;

&lt;p&gt;This is unquestionably negative news for the market for tech jobs. In an industry where burning through large amounts of cash until you are acquired or go public is common, running out of money is never a good thing. To make matters worse, recent inflation was worse than anticipated, which means the fed won't be able to lower interest rates anytime soon. There are really only two possible outcomes. No matter what happens with interest rates—whether they remain high and usher in a second Great Depression or they go below zero and force the dollar to hyperinflate into worthless toilet paper—AI will eventually replace all of these tech employment.&lt;/p&gt;

</description>
      <category>startup</category>
      <category>siliconvalley</category>
      <category>news</category>
      <category>webdev</category>
    </item>
  </channel>
</rss>
