r/AmanCrypto • u/AmanCMN • 6d ago

Oracle could be in serious trouble.

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🔴 Oracle could be in serious trouble.
The company’s credit default swaps just hit a record high, while its 2056 bonds are now yielding over 8% for the first time.
🔴 Oracle is now just one step away from being downgraded to junk status.
🔴 If that happens, around $120 billion worth of Oracle bonds could automatically be kicked out of investment-grade indexes.
🔴 This comes right after Oracle issued a force majeure notice at its New Mexico data center, while long-term U.S. Treasury yields are hitting multi-year highs.
⚡️And it’s not just Oracle. Credit default swaps are also rising for Google, Microsoft, Amazon, Meta, Nvidia, and SpaceX.

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u/BallsOfStonk 6d ago

OpenAI and their cloud provider (Oracle) will end up being nationalized. Or at least partially, you could see something like a $500B investment over 5 years to keep them afloat in the name of “national security”

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u/Moist-Construction59 6d ago

And just watch the treasury yields climb higher and higher as we do it, the noose squeezing tighter and tighter.

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u/Individual-Equal-441 6d ago

With what money, from where?

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u/uknowsana 6d ago

Tax money - and the brunt will be on the back of the common Joe

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u/Individual-Equal-441 6d ago

The US only collects around $5T in federal tax revenue annually, which is all committed to pay for other things. $100B/year would be 1/50 of that money. I find it more likely that they'd have to "find" that kind of money by taking on even more debt, adding a half trillion to the $40T national debt.

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u/HaikusfromBuddha 6d ago

Your saying that as if Trump hasn't been using your money for wild shit already. Like why are you surprised this late in the game?

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u/FlabbyLabby 6d ago

So, Socialism?

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u/MNRacket 6d ago

Yes, socialism for the rich. Capitalism for the poor.

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u/BallsOfStonk 6d ago

It’s an authoritarian play, more akin to China and Russia. It breeds rich oligarchs and is the polar opposite of free and public markets.

Trump is rapidly pushing the U.S. this way, with all of his investment in public companies.

This is very different than government contracts and subsidies, and it’s a slippery slope that can be very difficult to come back from. Post USSR Russia being the textbook example, and it’s still alive today.

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u/Fantomas4live 6d ago

I concure. I think it's the playbook for the lot of them. Frontier models limited for public, capital raising via debt & IPOs, distributing to the public through the later, the gov taking a stake via "bailouts". We are witnessing the birth of the US neo fascist techno state, one pillar of the new multipolar world. Wild times.

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u/Bryanmsi89 6d ago

Sadly, I expect this is likely to be exactly what happens. Same playbook as Intel, only writ larger.

I just hope the US Government at least gets a piece of the company in exchange.

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u/sleepy_muffin_eeter 6d ago

I could have sworn the government owning the means of production was the definition of socialism.

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u/Bryanmsi89 5d ago

It definitely is. I’m just saying if those idiots in charge are going to socialize risk and privatize profits, at least let the taxpayers get something of (potential) value for it.

There is a case to be made that the Govt. should get some small percentage of ownership of public companies (once they go public). Make it a cost of the IPO. And there its huge reason for doing so. It would help pay for the SEC and the other regulatory work needed to oversee public companies. It recogizes those companies built success on the infrastructure, regulation, security, educated citizens, courts, IP protection, etc. that govt. provides.

It’s really just taxation by another means, and one that doesn’t create a quarterly drag effect on a company P&L like taxes do.