A Panicking Oracle Plans To Raise Up To $50 Billion, As Its Stock And Bonds Crater. “Never Seen Risk Like This Before In My Career”, Ed Dowd Warns

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Just over a month ago, on Dec 17, alongside the news that Abu Dhabi was set to invest billions in OpenAI thus preventing a year-end tech rout, we said that ORCL CDS – which on that day hit the widest level since the 2008 financial crisis at 156bps – “may have gone a bit too far”…

… and sure enough, for the next month or so, Oracle CDS tightened rather notably. However, we certainly did not expect the company to just sit there and do nothing, as the market started asking questions again about where the tens of billions in committed funding would come from. After all, we were the first to lay out back in November the case why Oracle CDS should be trading much wider than it was at the time (see “Oracle Is First AI Domino To Fall After Barclays Downgrades Its Debt To Sell.“)

And since nothing changed, the questions started coming in once more.

https://www.zerohedge.com/markets/panicking-oracle-plans-raise-50-billion-its-stock-and-bonds-crater

Via Greg Hunter’s USAWatchdog.com,

Former Wall Street money manager and financial analyst Ed Dowd of PhinanceTechnologies.com warned in December we were “At the Beginning of Credit Destruction Cycle.” 

Renowned hedge fund BlackRock was the latest victim of credit destruction with this week’s headline that said, “BlackRock cuts value of private debt fund by 19%, waives fee.”

Dowd is right—again.

It’s going to get a lot worse, according to Dowd’s latest report called “US Economy Outlook 2026.”  Dowd says, “This is a big call, and what is going to happen does not happen that often…”

”  We will try to call the bottom in the future, but right now, I have never seen risk like this before in my career. 

This has been unfolding. . .. I have not been wrong in the 2025 call.  The stock market did go up 17%, but the rest of the economy imploded.  Real estate started rolling over…

Unfortunately, because this is such a bubble because they kicked the can down the road . . . the odds of this happening fast have increased exponentially since the beginning of 2025.”

https://www.zerohedge.com/markets/never-seen-risk-my-career-ed-dowd-warns