The SEC dropped key disclosure rules for data center debt, which is good for stocks and AI spending short-term but sets up a bigger crash later.

• After 2008, bundled loans had to keep "skin in the game" and disclose what was inside; the SEC just agreed data center debt is exempt from those rules.
• The day after, Nvidia teamed up with Apollo, BlackRock, Blackstone, Goldman, and KKR to mobilize $500 billion for GPUs, with much of it flowing back to Nvidia.
• Elon Musk's plan to spend $30–50 billion per gigawatt on AI compute is fueling the same boom, pushing SpaceX and the broader market higher.
• Cooler inflation and a softer job market mean the Fed likely won't raise rates, another reason stocks keep climbing for now.
• The catch: companies like CoreWeave are drowning in debt, with $18 billion in bills due and only $6 billion in cash, and are hiding their true borrowing costs by selling bonds at a discount.

Outlook: Expect the AI spending boom and stock rally to keep running through the rest of 2026, but with weak balance sheets and looser rules, the eventual bust could be severe.