Michael Burry has been very good about predicting the worst points of a recession, and his warning about Silicon Valley Bank being the Enron of the 2022-2023 recession will probably be proven correct by the end of business day 10 March 2023.
Per Wikipedia: Silicon Valley Bank focuses on lending to technology companies, providing multiple services to venture capital, revenue-based financing and private equity firms that invest in technology and biotechnology, and also on private banking services for high-net-worth individuals, in its home market in Silicon Valley.
In addition to taking deposits and making loans, the bank operates venture capital and private equity divisions that sometimes invest in the firm's commercial banking clients.
From Reuters: "It just gets people freaked out because Silicon Valley, historically has been a very strong, well-run bank. If they're having issues right now, people are wondering what about other banks that are lesser quality and that don't have the reputation that Silicon Valley Bank has."
Already Peter Thiel and other Silicon Valley VC influencers are advising their clients to withdraw from SVB, thus the largest bank in Silicon Valley in terms of deposits, with a 25.9% market share and a go-to bank for new startups is in the middle of a bank run.
Like the FTX failure, the SVB bank failure will drag down the economy as we close Q1 2023.
Adjust your domain buying and selling strategy accordingly, as Q2 2023 will likely be the worst quarter since July 2022. This will directly impact startup prospects within the tech sector; which for me at least are among my most valued end users.
The U.S. economy has officially entered the worst phase of the 2022-2023 recession.