The unicorns are dying.
Markets seemed to really wake up to the plight of the unicorn when WeWork aborted its much-anticipated IPO, but the air started coming out of the unicorn bubble long before WeWork’s IPO demise.
Unicorns are privately held companies valued over $1 billion. Companies like Lyft, Chewie, Uber and WeWork were the darlings of WallStreet. Their IPOs were much-anticipated by investors. They are also the poster children for easy-money induced market mania, and their IPOs were crucial for maintaining the bubble.
Not long ago, Federal Reserve chair Janet Yellen proclaimed an economic meltdown like the one we saw in 2008 will not likely happen again “in our lifetime.” Why? Because banks are “very much stronger.”
Apparently, at least some of the world’s big bankers don’t agree with Yellen’s assessment.
Over recent weeks, officials from a number of the world’s major banks have warned that the current trajectory is unsustainable, and a crash may loom on the horizon.