VCs have been throwing around Monopoly money on deals that make no sense, and doing so at astronomical multiples.

The music stopped and firms (Theil and other VCs) began scurrying back up the daisy chain of leverage seeking prestine collateral and pulling funds from institutions they knew mostly likely wouldn’t survive because of the levered books they had. Those books that “appeared” like normal looking collateral but were actually complex web of lending on the same underlying or fixed income positions that yield 1-2%… when yields blew out it blew them up.