E119: Silicon Valley Bank implodes: startup extinction event, contagion risk, culpability, and more

PRODUCER'S NOTE: the zoom video feed went the way of SVB this week - sorry besties! all charts and graphics are still included.

(0:00) Bestie intro!
(1:57) Overview of the SVB collapse and bank run
(17:53) Who or what is to blame? Debating venture debt
(37:11) Contagion risk, second- and third-order effects, government backstops
(1:00:36) What does this mean for the VC industry? Silicon Valley panic cycle, advice for founders

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[allin]

PRODUCER'S NOTE: the zoom video feed went the way of SVB this week - sorry besties! all charts and graphics are still included.

[chiraginuta]

Chamath in 2020 (Covid Crisis): "Who Cares? Let 'Em Get Wiped Out" ;
Chamath in 2023 (when it impacts VC community): Fed should step in and save us.

[tlueddek]

Chamath, a few short years ago: "Those are the rules of the game. That's right. Because these are the people that purport to be the most sophisticated investors in the world, they deserve to get wiped out."

[coreybrockamp]

Well this is the last All In Pod I watch. Principled characters until it touches their portfolio.

[EwanGaffney]

This was the episode that finally broke the fourth wall. All the besties are shilling a for big bailout now, only when it happens right on their property line.

[Jake-Day]

22:16 David Sacks blames the regulators for the bankers making bad choices.

Truly breathtaking.

[jakefugazi]

Friedberg's largest concern is the national debt (until now).
Sacks wants smaller government - less interference in private markets (until now).
Chamath says let the entire airline industry go away - government can not afford more bailouts (until now).
All In Hypocrisy

[familiarshadow]

The worst people, the absolute worst people, are those who only think about fairness after “unfairness” happens to them.

[hulkingmass]

Can someone please make a compilation of all of these guys holding the exact opposite position on government intervention when the party at risk isn't themselves. They need to watch this and actually let it sink in.

[riongull]

To suggest that "the public" should bail this bank out (as if we have a choice in the matter) is completely tone deaf and is why people are sick of institutions of all stripes, including VC. Yes, I understand the arguments for the bail out, but it's the wrong thing to do. It needs to fail, even the depositors if needed.

[Avengerie]

Sacks: “we opensourced our deposits to the banks, and they’ve just gone crazy with them”

[liuin]

Did you know that SVB's Chief Administrative Officer was also the CFO for Lehman Brothers' before the 2008 crisis? How coincidental! 🙂

[jimmyjimmy]

So according to jcal, the government should bail out a VC capital that went under with SVB because the government might see some return on that investment in a long enough timeline.

But the government should not:
forgive student loan debt
forgive medical debt

Because there is no return on investment for poor people?

[timjohnson]

During the discussion of the PPP loans, anyone else remember Chamath saying these companies should get no support and they should have been prepared for a global pandemic and lockdowns? Funny how he’s so much more forgiving to Silicon Valley companies. I was hoping Chamath would keep to his principled take from just 3 years ago, and I’m disappointed in him.

[_chip]

David sacks calling for his stimmy check is a fun vibe

[sideshowamit]

The time when ALL IN showed their true colors. “Who cares let them get wiped out”…. Unless it happens to me

[ultrastoat]

So weird that when your personal interests are at stake, all of a sudden “government PLEASE come help”. Damn.

[nworks]

I wonder what they are going to say about the entire VC industry chicken littling themselves into doing a bank run on their own bank and LITTERALLY destroying their own industry! 🤦

[WillieFungo]

To say I couldn't wait for this episode would be an understatement.

[saranya]

Didn’t chamath say to let the airlines go bankrupt and argue against bailouts during covid? Now the besties want a federal bailout. Federal govt and Brandon bad until you need their help .