Christ, I now have three train crashes that I am watching. FTX and Crypto, The Twitter saga, and now the failure of SVB (I drive by it all the time).

Gonna need more popcorn

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Great post, Max. Another factor I can see at play is the Greater Fool Theory, which is when investors know they’re taking or sustaining a risk but figure they’ll always be able to get out of a run before the morons at the end of the chain. With SVB, I guess quick online liquidity and ultrafast online news transmission mean that some of the fools never expected to be fools.

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Love your recap!! What a dumpster fire. All those years deal flow was soooooooo easy then boom!

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Mar 13, 2023Liked by Max Read

A big week for people who took your [screenshot of some incomprehensible Bloomberg terminal chart] advice seriously.

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Hey Max, wow - what a read. This is the perfect article to set this all out in a simple and consise way.

For me, I'm nervous of the knock-on effects of this within the supply chain ecosystem.

Payroll getting hit is bad.

But what about businesses that need to pay their suppliers. And those suppliers who need to pay more suppliers. This might already be on the back on poor payment terms which means cash is lean and month-to-month living is the norm.

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Mar 11, 2023Liked by Max Read

The payroll angle is interesting, they’ll probably figure it out by Wednesday but if not it’ll be wild to see if this (ugh) ripples out to the larger economy.

I wonder if this along with the crypto pop and twitter’s slow death are the beginning of the of the end of the era of Silicon Valley VCs as a driving cultural force. Or are they just going to continue to mutate into something even more grotesque and vile - kept alive by the billions of dollars worth momentum from one amazing bet on some guy’s vision of a better Hot or Not.

Guess we’ll see!

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Ugh. I also compulsively rubberneck. That’s a good way to put it. Constantly resisting the urge to investigate the latest train wrecks.

Catastrophe Gossip.

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