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Taikhoom10today at 2:44 AM1 replyview on HN

No, I get this; it is not a problem. It becomes one when they cannot pay back this financing, in the event that they cannot build a sustainable business, which they cannot, because the capital cycle leads to overinvestment, meaning the financiers cannot meet their returns.

https://s-1.vercel.app/posts/the-capital-cycle-theory/


Replies

fookertoday at 2:53 AM

It's a problem when there's 10x leverage AND the underlying asset massively deprecates in value.

Neither of those look likely yet.