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This verges on conspiracy theory logic, to my eyes... no, VCs certainly did not purposefully put their entire portfolios and industries at risk in order to put
by rashkov 4y ago
This verges on conspiracy theory logic, to my eyes... no, VCs certainly did not purposefully put their entire portfolios and industries at risk in order to put a stop to interest rate rises. You'd have to presume an all-knowing and all-powerful cast of actors to pull that off. The original point was a good one -- that the overall outcome of this disaster is overly good to VCs, but that's about as far as it goes.
- machina_ex_deus 4y agoI'm not saying they made the shitty choices for the bank. I'm saying that given the risk that the bank faced, and their awareness that they are risking systemic failures in their industry, some of them decided to run the bank. And they obviously knew the others would have to follow, because bank runs force you to do it. It only takes one of them to do this calculation and take the gambit, and the rest of them just follow because they have to. The shitty bank choices were independent mistakes, and were the major mistake. But the reason it blew up so strongly is because key players had an interest in a blow up.