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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Over on Hacker News they are talking about the failure of Silicon Valley Bank, and it’s illiquid long dated treasuries.

With the rapid rise in internet rates, almost all the long dated debt over the last 2 decades have taken a HUGE  haircut, so suddenly many banks and such will be under capitalized and the Treasury market is much less liquid.

Couple that with debt ceiling shenanigans and possible China dumping UST as political stunt or even prelude to Taiwan attack, and the US could suddenly have no way to pay its bills and could collapse. [/quote]

Surprised more ppl not talking about SVB…..[/quote]

DP. Same here. And I’m not even surprised, as someone who worked at SVB for a year. That place was ran so terribly bad, it’s no real surprise it’s falling apart. [/quote]

Considering how inept so many VC firms can be (see Sequoia love letter to SBF https://web.archive.org/web/20221027180943/https://www.sequoiacap.com/article/sam-bankman-fried-spotlight/), and all the copycat startups funded by every VC firm, there is a certain amount of emperor has no clothes in tech….

Google and FB were legit money makers, basically inventing online advertising and draining from TV. Since them, what companies have managed to actually make money on that scale?[/quote]

I've seen some arguments thrown out that SVB is so systemically necessary for the tech sector that there is going to be a "too big to fail" bailout. Guess the gov is going to need to prop up crypto in order to save the economy.[/quote]

Bunch of wealthy tech companies fold is exactly what Fed wants to cool economy. BigTech will be fine. [/quote]

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