E120: Banking crisis and the great VC reset
- Mar 16, 2023
- 1:30:05
- Full Episode
(0:00) Bestie intro! (1:35) Recapping the events of the past week (5:39) Understanding the banking crisis (32:55) Solving the global debt problem, righting the ship (54:20) VC market update: Founders Fund splits its eighth fund in two, Sequoia's reported returns, YC cuts its growth-stage team (1:08:36) Science corner: Superconductors (1:24:56) DeSantis update, Ukraine spending run rate, bestie wrap!
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Intro Music Credit: https://rb.gy/tppkzl https://twitter.com/yung_spielburg
Intro Video Credit: https://twitter.com/TheZachEffect
Referenced in the show: https://seekingalpha.com/article/4565388-svb-financial-blow-up-risk https://www.wsj.com/articles/easy-loans-great-service-why-silicon-valley-loved-silicon-valley-bank-6b3f203e https://www.wsj.com/articles/the-silicon-valley-bank-bailout-chorus-yellen-treasury-fed-fdic-deposit-limit-dodd-frank-run-cc80761e https://www.bloomberg.com/news/articles/2023-03-16/credit-suisse-got-its-lifeline-now-it-needs-to-win-back-clients https://www.bloomberg.com/news/articles/2023-03-15/credit-suisse-top-shareholder-rules-out-more-assistance-to-bank-lf9gfhbr https://www.nytimes.com/live/2023/03/16/world/france-pension-vote#france-pension-vote https://www.politico.eu/article/police-fire-dutch-farmer-protest-nitrogen-emission-cut https://www.bbc.com/news/uk-england-london-64968795 https://www.treasurydirect.gov https://www.axios.com/2023/03/03/founders-fund-slashes-vc-peter-thiel https://www.axios.com/2023/03/15/stripe-50-billion https://www.businessinsider.com/sequoia-capital-venture-capital-returns-university-of-california-2023-3 https://www.wsj.com/articles/tiger-global-writes-down-venture-funds-bets-by-33-in-2022-3f9f6ade https://techcrunch.com/2023/03/13/y-combinator-cuts-nearly-20-of-staff-scales-back-growth-stage-investments https://twitter.com/Jason/status/1633570102326202368 https://www.nature.com/articles/s41586-023-05742-0 https://youtu.be/4lE8QWtrEvQ https://www.theatlantic.com/ideas/archive/2023/03/desantis-ukraine-pro-russia-position-gop-presidential-nomination/673392
Brief Summary
The hosts discuss the banking crisis, venture capitalists' roles, and room temperature superconductors' potential impact on technology.
Key points
- Communication Style Debate. A discussion on the effectiveness of using humor and caps lock in serious situations.
- Warning Signs Ignored. The hosts reflect on how the signs of the banking crisis were overlooked.
- Wokeness and Banking Failures. Wokeness is blamed for banking issues, but it's not the main cause.
- The Role of the Fed. The Fed's actions have created a buyer of last resort, impacting the banking system.
- Pension Liabilities Crisis. Underfunded pension liabilities pose a significant threat to economic stability.
- Consumer Protection in Banking. Depositors should not bear the burden of bank failures due to regulatory failures.
Episode highlights
- Communication Style DebateA discussion on the effectiveness of using humor and caps lock in serious situations.“I always want to tell the truth and yeah, sometimes I make jokes.”3:58Mar 16, 2023
- Warning Signs IgnoredThe hosts reflect on how the signs of the banking crisis were overlooked.“This was hiding in plain sight.”14:33Mar 16, 2023
- Wokeness and Banking FailuresWokeness is blamed for banking issues, but it's not the main cause.“If wokeness was the key factor, the whole Fortune 500 would be out of business.”21:14Mar 16, 2023
- The Role of the FedThe Fed's actions have created a buyer of last resort, impacting the banking system.“What the FED did this weekend is essentially create a buyer of Last Resort again.”27:42Mar 16, 2023
- Pension Liabilities CrisisUnderfunded pension liabilities pose a significant threat to economic stability.“There's a massive amount of money that's not funded today.”34:22Mar 16, 2023
- Consumer Protection in BankingDepositors should not bear the burden of bank failures due to regulatory failures.“Consumers deserve to know their money is safe, not at risk.”41:35Mar 16, 2023
- The Search for Safe Banking SolutionsA call for a banking product that prioritizes consumer safety over profit.“Why doesn't a product like this exist?”45:04Mar 16, 2023
- Y Combinator's Unicorn Hit RateOnly 6% of companies from Y Combinator become unicorns, highlighting the challenges of success.“The YC unicorn hit rate is six percent.”57:28Mar 16, 2023
