Kinda weird that an article arguing that we will get a financial crisis from defaults on credit / loans for data centers...doesn't say how much loans to data centers there are...
Of the $100bn capex from the Mag7, I would bet less than 10% is debt financed.
Of the 1% of GDP ($300bn), you are probably talking about less than $50bn.
Then he lists around $10 TRILLION of other debt, of which $1t+ is private credit.
He may have identified the right pipe (private lending) but wrong location...
Kinda weird that an article arguing that we will get a financial crisis from defaults on credit / loans for data centers...doesn't say how much loans to data centers there are...
Of the $100bn capex from the Mag7, I would bet less than 10% is debt financed.
Of the 1% of GDP ($300bn), you are probably talking about less than $50bn.
Then he lists around $10 TRILLION of other debt, of which $1t+ is private credit.
He may have identified the right pipe (private lending) but wrong location...
Other discussions:
https://news.ycombinator.com/item?id=44775884
https://news.ycombinator.com/item?id=44780202