“The Industrial Virality Complex”

The internet is full of hot takes around the series of collapses we just witnessed and I’ve debated how deep to go here. I found a thread that does a good job of providing a time series of events (with one suggested edit by me) and implications going forward. A big shout out to @professorstam.eth for the quality content ๐Ÿ‘‡

My one edit to the timeline is in the below point, SVB didn’t announce they were liquidating there Available-for-Sale Securities… they announced they had already sold their AFS ๐Ÿ‘‡

So it makes the bank run more confusing, as, if the above description was correct, then yes the scenario would have been:

  • market sees bank admission of liquidity concerns
  • lets get our money out.

But that’s not what happened, SVB had already made the move of selling their AFS to Goldman at a loss and in their eyes now had the necessary strength in their balance sheet to continue to serve their customers.

This highlights @professorstam.eth’s point further, that the virality of the world we live in can run rampant, even without reason.

The SVB announcement below from their Mid-Quarter update deck dated 3.8.23 ๐Ÿ‘‡