> “as long as it’s cash flow continues” is doing a lot of optimistic heavy lifting
It's not. It's stating a condition. For traditional banks, a stock crash can independently trigger a failure.
> whole premise of the circular financing worry is that Nvidia sits in the middle of all the guarantees made to companies like OpenAI. If any of those companies become insolvent, Nvidia is on the hook for it
Sorry, I meant revenues. If Nvidia's revenues stay stable, these commitments aren't a problem. Even if the stock price crashes.
> Nvidia isn’t really creating money
It absolutely is. Similar to the way banks create money [1]. The commitments support credit that wouldn't exist without it.
[1] https://www.bankofengland.co.uk/-/media/boe/files/quarterly-...
> It absolutely is. Similar to the way banks create money [1]. The commitments support credit that wouldn't exist without it.
Making a loan/offering credit isn't automatically money creation - the amount of money in the system before and after the loan might be the same. Haven't been following Nvidia all that closely, but it seems a little bit unlikely that they're a commercial bank. Financial chicanery they may be doing but offering deposit accounts would be new territory. The loan has to be made in a very particular way for it to be money creation (notably, in a way that creates new money), and it should be illegal for most people to do that otherwise we'd all be printing our own money instead of the printing being directed to wealthy asset owners first and foremost.