Oh don't get me wrong, I do blame the bank even more. But to pretend like VCs didn't have huge interest in this blowing up in the worsts possible way, is just shutting your eyes.

They are such bad actors, their words were all pretending this is something bad, but their actions weren't to recapitalize the bank but to let it blow up intentionally, while spreading FUD. They made a very successful gambit here that they could blow the system up to get what they want (rate hikes stopped). And they won with that gambit.

If they get away with this, this gambit to them was totally worth the risk that the Fed won't chicken out.

It's a case of murdering and keeping the inheritance.

If I were the Fed, I would see this as a jackpot that finally the rate hikes are creating deflation in the best possible location and continue straight ahead. This is even better deflation than you can get by rising rate hikes for everyone.