I'm sorry I didn't use the word "reality" as to define some alternative interpretation or a better philosophical approach to valuation, but trying to see what you mean. We can even consider WeWork and a few other valuations on the edge, or of some obsolete past.
By reality here I meant that SVB caught itself having to liquidate positions to get, what I suppose is, enough liquidity to operate. Realised a significant loss, and the cashflow got aggravated when investors and depositors reacted to that information.
Reality that some (chief?) executive, based on perhaps unrelared reasons, sold a big bag of shares, and that information spread and caused further market pressure, followed later on by more run on the bank.
Reality that entering 2023 the fed continued to raise the interest rate and the tech sector saw further negative prospects, at least from the point of view of investors, aggravating SVB's situation. In particular when Moody
was about to downgrade the bank rating.
I don't have a crystal ball, neither did SVB, and its CFO surely is many folds better at strategic/tactical financing than I, but this series of events is although summarised the way it unfolded for them and I refer to reality calling back because, it doesn't matter how the books looked like or what philosophy was used in 2021, in September last year, or at the latest financial disclosure. Wires couldn't be honored and.. reality call happens. Not my reality. The reality, which i would call accountinglessly obvious.
About "the end" I don't see it that way at all. We certainly aren't dead. Death though already owns most of life and keeps growing relatively to the living. It doesn't imply we will necessarily all end up dead.
Lastly, back to the market and the demise of some major bank, or all of them if needs be, it matters very little to life. Not all that serious if you want my take on it.
Let's see what Monday morning got to say, reality is what it is.