I’m circumspect that anyone knows how it’ll play out. I think there’s strong evidence a correction is coming, but some talking head is predicting it’s going to be this week every week, and have been for a while. Nobody has convinced me it’s likely to look like the Great Depression yet.
I also think the circular dealing fears in particular are overstated. Debt financing that looks like this is common in semicon, and I doubt there are any serious investors that haven’t already priced it in. If the bust is fatal for AI investment, it’ll just be bankrupt companies owing money to other bankrupt companies.
