Coleman Church

obviously an extraordinarily capital intensive.

And when I was speaking about before, about how a lot of these Mag7 companies had a great model of being capital-like, they're now becoming quite capital intensive.

Exactly.

You're building physical things and you're spending, you're borrowing a ton of money.

And this is what the problem with Oracle is right now, is they borrow a lot of money.

And now

They're borrowing a lot of money to build things and build things that depreciate in value over time, right?

Like a chip that you buy, a lot of the financing that's been going on too has been people have been using collateral, these chips as collateral to borrow against, right?

So there's borrowing and borrowing and borrowing, but you're borrowing against a chip that naturally is going to be replaced by the next evolution.

Of course.

So that's a bit of concern about the value of the collateral.

And when that daisy chain unwinds, it could be ugly.

The other thing is that there's so much borrowing in the private credit markets for these hyperscalers and these data centers that it crowds out

There's a finite amount of borrowing available, right?

So it's crowding out borrowing and investing in other areas of the economy.

And that concentration risk concerns me to an extent as well.

And a lot of people have made the analogy to the 99-2000 tech bubble.

And the good news coming out of that down the line is that, okay, we all got hyped up on the internet and we got carried away with pets.com and things like that.

E-toys.

But the truth was, in retrospect, we weren't hyped up enough about the internet and what it would do and how it would change the world.