Why do I think that there is a government bailout brewing?
BURN, BABY, BURN, DISCO AINFERNO!
This AI bubble is going to take so much of the economy with it and I can’t help but think we are all going to be paying to keep “too big to fail” businesses that clearly knew it was a bubble but invested anyway because the public would pay if it went side ways.
Hanta Virus going transmissable, oil shock already as big as COVID from the war… Going to be a bad summer.
Fucking Hantavirus?
looks it up
First case is on a cruise ship. What a surprise.
Aww, did you buy a bunch of correlated debt and refuse to validate whether the underlying assets would be profitable?
That’s too bad.
Groups including JPMorgan Chase, Morgan Stanley and SMBC are trying to find ways to distribute portions of data centre-related deals to a broader range of investors, according to people familiar with the matter.
Lenders are exploring private deals to sell stakes in the debt as well as so-called risk transfers to reduce exposure to big borrowers and free up capacity for more lending.
This gives me strong deja vu for the housing crisis of '08.
What? You don’t want to buy a few tranches of GPU backed securities?
Last time it happened, trillions in tax dollars were funneled right to the top. They would be stupid not to try again
I want to short the housing. I mean GPU market.
Eh, if they’re actively talking about it, then it’s a lot better than the housing crisis. The big issue there was no one was actually calling the garbage assets garbage. Here they seem to be calling out the risk.
That’s not true at all. People were screaming their heads off about the looming crisis.
Reading further into, it’s a mixed bag. There are people calling it out, but some of the movement of funds is to free up more lending.
Was just going to say that…
I was also going to say that.
These are the too-big-to-fails, right? So they must be destroyed then.
Won’t happen when the only politicians we can vote for are corpodems and other republicans.
LET THEM FAIL.
I agree. However, we all know the Federal Reserve will not allow this to happen and that they will just print the money to make them solvent, just like in 2008.
Let the bubble pop
Let the bank fail.
The point of this is that they are arranging for other people to fail. Like your pension fund or ira.
It’s like they suddenly realized that “data center leased to Oracle” but financed by them and owned by a no-name company with no assets and considerable liabilities is a bad idea.
Also, would not be surprised to find the company is a shell company and after the finance and legal teams are paid, the income shifts back through shell companies to the parent company, which is somehow Oracle, but with no legal responsibility to the lenders or municipality.
Even if my supposition is not accurate, just the first statement should have stopped them cold.
It’s like they suddenly realized that “data center leased to Oracle” but financed by them and owned by a no-name company with no assets and considerable liabilities is a bad idea.
I would be shocked to discover that that’s not exactly, literally, what happened.
Why do I feel like “explore private deals” really just means “inventing legal fictions” to permanently insulate themselves from risk?
Maybe they can bundle them up into investment vehicles and sell them to normal people, they can name them Regular Everyday Investment Trusts or something. Totally no way for that to fall apart.
After they sell them, they can bet against their own product, double dipping on their failing portfolios.
so paywalled, didn’t even show a byline.
This is fundamental mechanism behind subprime crisis., Channels to offload debt so that more debt can be issued.
