What we’re reading (3/18)
“Government Fear-Mongering Over Silicon Valley Bank — And How To Profit” (New York Post). “There is lots I don’t know—like where stocks will be in 45 days. I do know that once you get to bank failures, stocks are hugely higher two years later.”
“Worried About A Recession Coming? You’re Not Alone.” (Morningstar). “We surveyed 949 preretirement U.S. investors and found it’s not just experts who are predicting a recession. Our study found that 68% of investors think a recession happening in 2023 is likely to nearly certain. In fact, less than 1% of respondents felt there was almost no chance that a recession would happen, compared with 11.9% who felt it is almost certain.”
“What Gets Lost When You Rescue Markets” (Wall Street Journal). “As my colleague Greg Ip pointed out in his 2015 book ‘Foolproof,’ however, making an environment feel safer can lull many people into complacency and excessive risk-taking. It also tends to coalesce massive power into the hands of a few people at the pinnacle of the financial system.”
“SVB Board Bickering Wasted Crucial Time Before Collapse” (Semafor). “Silicon Valley Bank lost a crucial day to raise money from investors after its board rejected executives’ financial projections, leading to a chaotic and ultimately doomed scramble for cash, people familiar with the matter said.”
“In Silicon Valley, A Boom Era Feels Like It’s Ending” (MarketWatch). “Silicon Valley is getting a reset — some could also call it a comeuppance — after the past 12 to 13 years of insane growth, often irresponsible spending, hubris and swagger. Big Tech has grown astronomically, and there were real successes in companies developing social media, cloud computing, mobile apps and electric vehicles. But there were also frauds and debacles like Theranos and WeWork.”
