by Confident-Country123
Nvda market cap of $3.2T 2008 crash led to losses of $2T.
The financial crisis happened because:
- a large loss in asset valuation
- high leverage and derivative positions multiplied this loss into something way bigger
- every major bank in the country was holding these assets on its balance sheet
- banking system instability starts mass panic / run
NVIDIA stops at number 1. Maybe it gets to 2 and some hedge funds go under, which doesn’t matter to the wider economy. But no major bank has a balance sheet riding on this because equity is always assumed risky. The reason that the financial crisis in 2008 could get to step 3 was that assets that were considered extremely safe turned out not to be.
$NVDA is no longer the world's most valuable company, after just a day 🤭
I wonder what this reminds me off🤭 pic.twitter.com/9MJB7a8koL
— Le Shrub🌳🔥🇺🇦 (@agnostoxxx) June 20, 2024
Nvidia just lost the equivalent of Intel’s entire market cap in a single day
byu/StatQuants inStockMarket
The 3x levered semiconductor ETF never took out the pandemic high, because the drawdown from that scam was so colossal.
The drawdown from this AI scam will make the last one seem like a good time. pic.twitter.com/qfuUaZ5Fx1
— Mac10 (@SuburbanDrone) June 20, 2024
We have seen countless comparisons of current $NVDA stock price with Cisco during dotcom bubble. Taking a look at price to sales is probably more meaningful.
Ht @AugurInfinity, btw give them a follow, great charts. pic.twitter.com/3UYcn2Vdbz
— Michael A. Arouet (@MichaelAArouet) June 20, 2024