AMD Surges 38% on OpenAI Deal: The New South Sea Bubble?
Автор: Build Asset Management Clips
Загружено: 2025-10-17
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Matt Dines explains how OpenAI's $78 billion deal with AMD exemplifies a concerning trend of stock-for-stock transactions reminiscent of historical bubbles. The deal announcement sent AMD's stock up 38% on open. Matt compares this to the South Sea Bubble of 1720, warning that companies are "drawing resources out of the real economy in exchange for overpriced equity". These financing schemes work like "black magic" - the more they're used, the more costs pile up. Matt draws extensive parallels to the South Sea Company, which was created to consolidate British national debt but ultimately became a speculative vehicle. Like today's equity financing schemes, it promised profits that never materialized. The UK's debt-to-GDP ratio took over a century to resolve after similar financing tricks.
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