Nvidia's Risky Business

Jay Cooke revolutionized bond financing in the 1870s by selling Northern Pacific Railway bonds directly to retail investors through aggressive marketing and media control, but his model collapsed in 1873 when credit markets tightened, triggering the Panic of 1873 and a multi-year depression. The article draws a parallel between Cooke's unsustainable financing practices and Nvidia's current business model, suggesting that rapid growth dependent on continuous capital infusion carries significant systemic risk.