The death spiral becomes visible, really. The gun had already been fired, the body just hadn’t hit the ground yet.
I must say these failure modes are much worse than the ones I’ve experienced, which maybe I should be grateful for, I’d have to think about this. Generally I’ve seen a slower burn, where the remaining fiscal year plays out with soothing tones and promises of not changing things, and if money doesn’t magically appear in their accounts, which why would it? Then they don’t give you money for some of the things you usually do and while they technically didn’t tell you not to do them, if there’s no money you don’t get to do them.
I don’t know which business school teaches people to say “ah can you smell that fresh mountain air” while they have their hands wrapped tightly around your neck but that’s some gaslighting BS that I hope nobody experiences, but I know people have. Best I can do is tell them to watch out for it. Some places you’re safe until FY+1, and things don’t go fully absurd until FY+2.