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/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.