Technology

It's happening!!! Bubble pop is happening!!! article is underplaying it.

Coreweave debt pushed towards 16% yield today. The worst of the AI clusterfuck. Oracle, 2nd worse, move to 8% which is still absurdly low, but was holding 6% a week ago.

Main headline, yes the big banks are selling off debt to losertards. At a discount. Insurance companies are the losertards chasing yield, but have big losses today.

Nvidia, the circular financing backstop for the bubble, signaled today that it is just waiting for bankruptcies to swoop in instead of propping up the fraud. Bond/share holders will get crushed, and bubble dead, but still Nvidia will drive rampocalypse if the datacenters are still alllowed.

I'd love it if it was packaged up into securities and credit rating agencies gave those securities an A+++ would buy again rating so my wallstreet-managed 401k knows where to steal my money.

Oh NO! We NEED to Raise Taxes to PAY for these things OTHERWISE who's going to Take Our Jobs while Poisoning Our Water while Killing Our Children while making Subpar Fruit Videos?

-US Politicians!

That is on top of the $18 billion in bonds it sold in a single day last September

That's $6.57 trillion in annualized debt using AI bubble math.

I work in commercial real estate. This is a normal common practice in commercial real estate. They honestly do this for pretty much every type of real estate and for as many as they can.

They securitize it in portfolios and sell off interest in those payments to others. They intentionally mix and match properties in portfolios so if one fails, there is less risk to the whole thing.

I've seen fast food restaurants, malls, airports, billboards, cell towers, hollywood studios, aerospace firms, law firms, hotels, apartments, everything. And yes, also data centers

hmm, where have I seen this before? 🤔

I have an idea: they could package all the AI debt into securities and then sell it off in small pieces to individual investors. By spreading out the investment over many different loans, the risk of default will be greatly reduced. It's not like ALL the AI companies are going to default all at once, right? Ha ha.