Nvidia's circular-credit shadow banking system is collapsing, argues Svwang1
Svwang1 · x · 2026-11-13
Blogger Svwang1 argues the market is watching, in real time, the collapse of the shadow-banking system Nvidia built over recent years via revolving credit.
His framework: AI's positive news comes mainly from the technology side (new applications largely genuine), while negative news concentrates on financing — complex SPV structures, seller credit, revolving loans. Asset price appreciation ultimately depends on credit expansion in the sector; that expansion is technology-driven early on but often decouples from technology later. Reflexively treating any technical progress as bullish for asset prices, just because of early experiences, is dangerous.
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