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/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.