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philipallstar

> If they reach some kind of profitability it's not a big deal, but if not ...

What is the end of this sentence?

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There are two types of people. Those who can extrapolate from incomplete data, and

…those who understand binary? ;)

... then it is a big deal.

Okay, but why? What's the actual thing that will happen?

They made huge investment commitments based on planned revenue. They'll go bankrupt (and tear much of the economy down, given how tied up everyone is in them) if they can't keep raising money to pay for these commitments or turn huge profits.

But will they? How greatly are they leveraged? Even if the economics don't work out anymore, they'll be able to sell capacity, pivot, etc. without causing an implosion.

> But will they?

Yes.

> pivot

Unless they pivot to literally turning shit into gold, it's going to be a hard no.

Realistically, they'll be bailed out by the government. That's what will happen. Because China can't win.

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