The economy goes from boom to bust, bust to boom, new technologies and ideas come, the novelty wears off and reality sets in (but the gems stick around!), so on and so forth. One thing that was unique this cycle was the extended period of near-zero interest rates in the rich world - this made the boom very big.

I’m not sure it’s “Silicon Valley” thinking other than as a euphemism for subsidizing losses in hopes of future profits. But now interest rates are up, money is expensive, and justifying investment when 5% return is guaranteed means you need to promise significantly over 5% return. Junk bonds are one thing but highly speculative investments like VC are less attractive.

It’s sad that Hollywood creatives are struggling but they were part of a bubble, just like tech and biotech. Will be a tough 2 to 7 years.