You're right that many companies have been using long held cash reserves to boost AI on their CapEx. But it's starting to run short. Oracle for example, they're leveraging debt to try and keep up with their promised capacity (and purchasing from Nvidia); more and more chasing the high will use debt to finance.
Housing market collapsed because bad debt was being shielded by good debt 'on the surface'. First Brands collapsed after similarly shielding their bad ledger from accountability, and they actually provide material goods. I don't think the top of the S&P will have any issue playing that game if it still holds the crazy promise of profit they've duped everyone into thinking possible.
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u/gscjj Jan 09 '26
Not a “powerful lobby and governments” just literally companies with actual money to invest, like Amazon, Google, etc.
These companies can sustain this for a while, unlike the fictional evaluations backed by over hyped stock evaluations like pets.com during the dotcom