See comments elsewhere in this thread. To cite one well known recent example, Oracle stock went crazy recently (and Larry Ellison briefly became the world’s richest person) after they disclosed in their earnings report that they are expecting something like $400b in revenue from serving OpenAI in the coming years. These overinflated expectations systematically multiply and propagate until you’ve arrive at the situation we’re in. As soon as that does _not_ happen and everyone realizes it, the whole house of cards come crashing down, in a very 1929 sort of way.
This is the point TFA is making, albeit a bit hyperbolically.
It also happened in the dotcom bubble, telecom companies were providing leasing/loans to their customers to purchase more networking equipment.
Very similar to the circular funding happening between Nvidia, and their customers, Nvidia funding investments in AI datacenters which get spent in Nvidia equipment, each step of the cycle has to take a cut for paying their own OpEx where the money getting back to Nvidia diminishes in each pass through the cycle.
This is the point TFA is making, albeit a bit hyperbolically.