Wow some pretty pointed responses that ignore important context around the collapse. SVB had about $7b venture debt, and the total venture debt market balloone

Wow some pretty pointed responses that ignore important context around the collapse. SVB had about $7b venture debt, and the total venture debt market ballooned during the pandemic. VCs and banks like SVB were hyper-inflating start-ups with venture debt (which is totally worthless unless it can be flipped) and they continued doing this into 2022 and 2023 despite inflation and rising rates. 10 years ago venture debt was a fraction of what it became because it’s stupid-risky, especially for a bank. But with crypto and especially the rampant fraud within crypto, VCs found a few friendly banks and created a bubble. That $7b might as well have been a hole in the balance sheet, just like what FTX did. The banks and VCs had 12-16 months to de-risk and all they did was cut deal volume. Blaming the collapse in any way on the Fed is as specious as Musk trying to walk out on Twitter because of “bots.” Here’s e.g. one article on the SVB loanbook https://www.forbes.com/sites/amyfeldman/2023/03/19/silicon-valley-banks-demise-tightens-spigot-on-30-billion-of-venture-lending/?ssp=1&setlang=en-US&safesearch=moderate&sh=2a9ac8f42b99 https://www.forbes.com/sites/amyfeldman/2023/03/19/silicon-v...