Is AI the new financial threat?
31 Oct 2025 · 1 min
0:34
A Precursor Ventures partner argues debt is riskier than equity. When debt markets freeze, the economy stops. The 2008 crisis proved it; the 2000 dot-com crash didn't.
A Precursor Ventures partner argues debt is riskier than equity. When debt markets freeze, the economy stops. The 2008 crisis proved it; the 2000 dot-com crash didn't.
What is the value of a collateralized GPU that's two generations old? And I do think that I said this to my friend a while ago, and this is something that's really been in my mind. It is very hard to blow up the economy with equity. You can do it. We did it in 2000. It is very easy to blow up the economy with debt. And we did that in 08. And I'm like, if you ask me, what's scarier, 01 or 08? 08 08. Way scarier. When equity markets seize up, companies have problems, but the rest of the world kind of functions. When debt markets, it's like turning off the oxygen that keeps the economy running.
