EPISODE · Mar 20, 2023 · 4 MIN
Exploding Like a Firecracker
from Another World is Probable · host Another World is Probable
I keep thinking about the swiftness with which Silicon Valley Bank (SVB) collapsed. In the span of 48 hours, it went bust because as interest rates rose, VC capital to SVB’s portfolio companies decreased. That required the companies to start withdrawing deposits from SVB to fund day-to-day business operations but those deposits sat in bonds that were losing value by the day. The need for cash forced the bank to sell their illiquid bonds at a loss, and boom, financial panic. Whenever I hear stories like these, I strangely have a surge of hope that it portends the fall of capitalism. More in this week's post.
What this episode covers
I keep thinking about the swiftness with which Silicon Valley Bank (SVB) collapsed. In the span of 48 hours, it went bust because as interest rates rose, VC capital to SVB’s portfolio companies decreased. That required the companies to start withdrawing deposits from SVB to fund day-to-day business operations but those deposits sat in bonds that were losing value by the day. The need for cash forced the bank to sell their illiquid bonds at a loss, and boom, financial panic. Whenever I hear stories like these, I strangely have a surge of hope that it portends the fall of capitalism. More in this week's post.
NOW PLAYING
Exploding Like a Firecracker
No transcript for this episode yet
Similar Episodes
Mar 26, 2026 ·1m
Mar 19, 2026 ·34m
Feb 18, 2026 ·11m
Feb 11, 2026 ·45m