VC argue: AI cycle cracks start with leveraged debt defaults, not valuation cuts
FinanceYF5 · x · 2026-10-06
In a thread on AI investing, FinanceYF5 argues market cycles rarely collapse from equity valuation cuts — the real cracks start with leveraged debt defaults. Over-leveraged players with slightly mistimed entries are the first to blow up when the cycle turns. Right direction alone isn't enough; leverage and timing decide survival.
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