This is what the Fed wanted. A niche bank serving a sector of the economy that is over-capitalized and under-productive has gone belly up. Many VC-funded ventures that are not profitable and likely not to be profitable, essentially backed by years of free money that the VC's were trying to turn into profits, will now go under. A sizeable number of affluent employees in that unicorn herd will now hit the job market driving wages at the top down. Consumer spending will go down as a result of all the flashy web startups going out of business and inflation will finally start to really settle. VC's will also be much more cautious moving forward in an era where capital actually has a cost attached to accessing it. It's a win-win. Now if we can just focus in on all the freeloaders in the top 1% previously paying no taxes and living off of that free float we might actually get back to being a facts based economy instead of whatever this was the last 13 years or so.