Do you know where some VC's money comes from? Wall street invests in VCs using pension funds, 401k money. So if SV falls apart, the effect will be more than outside SV. Follow the money.
You need to understand the difference between "VC" money and the economy. The first one is about extra cash that can be invested, the economy is about people's money. If a bank loses it's money invested in tech, it won't go bankrupt because the bank doesn't invest its capital into one single thing. It's more complex than you think.
