“One of the greatest tools of the bubble has been the ability of private companies to openly misrepresent their revenues and costs, and for even public companies to manipulate depreciation schedules to misrepresent their capital investment related expenses and to engage in circular deals that misrepresent future revenues.”
“With the whole thing dependent upon the ability of a very small number of companies to raise colossal amounts of capital from lenders, venture capital and private equity. These three pools are now approaching exhaustion and the loss-making companies now must reach out to the wider financial markets to tap pension fund, mutual fund and the wider public’s investment pools. This is why we are seeing the rush of SpaceX, OpenAI and Anthropic toward initial public offerings.”
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