The BAD scenario is a fuckbunch of *even bigger* dipshits take out loans to buy these shares, with the expectation they'll service them with the profits they take.
In the middle of what ABSOLUTELY EVERYONE is acknowledging is a financial bubble.
That could make 2008 look like a fart in the wind.
Also it's important to note that a big reason SpaceX, OpenAI and Anthropic are seeking IPO is that none of them are profitable. SpaceX is dealing with a $20 billion bridge loan right now, in fact.
This is all economic poison, and if the money to buy shares comes from credit that's all our asses.
We're at a point where every other sector of the economy could face a downward price on their shares because a whole fuckbunch of dipshits drained all the cash out of shit like AT&T and Toyota and McDonald's and threw it at Elon Musk and Sam Altman.
And that's the GOOD scenario.
Index funds auto balance every year which is forced buying. SpaceX attempted to bypass the rules and have its stock immediately included. Those index funds are in large parts held by pension, insurance and retirement companies. It would force the stock into your portfolio. The money is from you.
Like right now Softbank is trying to get a loan based on its shares of Anthropic and when lenders looked at their valuation of those shares they said "lol no."
We're on the precipice of the "AI" bubble becoming another fucking credit crisis and we have *zero* functioning regulatory agencies .
We know the scam. What I'm saying is, the money has to move.
Pension funds are not just big pots of money sitting and waiting. It's already invested. In order to add SpaceX, that money has to come from somewhere else in the fund.
So where's it coming from?
"Profitable in the future" doesn't pay for the stock offerings *right now.*
The money to buy the stock has to come from somewhere, so either people are going to start liquidating their holdings in other businesses (oh fuck) or take out huge loans in an environment of rising interest rates (OH FUCK)
Inflation is up, interests rates are expected to rise, and the entire reason these companies are releasing stock is that private equity and venture capital has dried up.
Where is the money to buy these stock offerings coming from, exactly?
If the answer is "credit," then holy fuck us all Batman!