Andrew Ross Sorkin: SVB, Lessons from 2008 Financial Crisis & VC
Oct 12, 2023
45:39
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Financial columnist Andrew Ross Sorkin discusses non-obvious insights into the 2008 financial crisis, the banking system evolution, and the SVB collapse. He also explores venture capital in the media industry, AI's role in copyright, changes in M&A driven by private equity, and intriguing subjects like independent media and conspiracy theories.
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Quick takeaways
The 2008 financial crisis was a crisis of confidence that developed rapidly, highlighting the role of social media in enabling the rapid loss of confidence in financial institutions.
Artificial intelligence (AI) has the potential to disrupt industries like healthcare and education, but ethical concerns and challenges such as copyright issues and privacy need to be addressed.
Deep dives
Lessons learned from the 2008 financial crisis
Andrew Ross Sorkin discusses the evolution of our understanding of the 2008 financial crisis and how it has shaped the current financial landscape. He highlights that the crisis was a crisis of confidence and emphasizes the importance of recognizing that crises develop rapidly in minutes and seconds. Sorkin also points out the unique element of social media-driven crises and the role of social media in enabling rapid loss of confidence in financial institutions. Additionally, he explores the backlash against Wall Street after the crisis and the lessons learned about the need to support banks during a crisis. Sorkin reflects on the impact of the crisis on public trust in experts and institutions and its implications for the future.
The potential impact of AI on industries
Sorkin discusses the potential disruption of industries by artificial intelligence (AI). He highlights the healthcare and pharmaceutical sectors as areas that could significantly benefit from AI in terms of drug discovery and personalized healthcare. Sorkin also mentions the potential impact of AI in education, where personalized tutoring could be facilitated. He notes the challenges and ethical questions surrounding AI, including copyright issues with AI-generated content, the potential for AI-driven market manipulation, and concerns about privacy. Sorkin also touches on the role of private equity firms entering the tech space and the potential for AI to change the merger and acquisition landscape.
The changing media landscape and the rise of independent platforms
Sorkin expresses his admiration for independent media platforms like Substack and the growing trend of content creators going off on their own to build their readership and communities. He acknowledges the challenges of monetization and the dependence on platforms in the media industry. Sorkin also discusses the impact of AI on media, highlighting the growth of podcasts and the potential for AI to generate content. He notes the importance of finding a balance between following one's passion and pursuing areas where one can be truly valuable and effective in the media landscape.
Insights on M&A, regulatory landscape, and following one's passion
Sorkin shares his thoughts on mergers and acquisitions (M&A) and the regulatory landscape. He mentions the impact of regulatory scrutiny on M&A, particularly in the tech sector, with Lena Khan's leadership at the FTC. Sorkin also comments on the role of private equity firms in M&A and their increasing interest in the tech industry. He cautions against blindly following one's passion and emphasizes the value of being useful and effective in a particular area of expertise. He suggests that pursuing areas where one can be successful and impactful may be more important than solely following one's passion.
Andrew Ross Sorkin is a financial columnist for the New York Times, a co-anchor of CNBC’s Squawk Box and the founder and editor of DealBook. He’s also the co-creator of the hit-show Billions and the author of the bestselling bookToo Big To Fail, on the 2008 financial crisis.
On this episode of World of DaaS, Auren and Andrew dive into the intersecting realms of technology, finance, and data. Andrew offers non-obvious insights into the 2008 financial crisis, highlighting the nuances of a pivotal moment in history. He also discusses the evolution of the banking system since 2008, and how that crisis compares to the SVB collapse earlier this year.
As the conversation unfolds, Andrew delves into topics such as venture capital in the media industry, AI's role in copyright, changes in M&A driven by private equity, and even touches on intriguing subjects like independent media and conspiracy theories.