Banks seek to offload risk to avoid ‘choking’ on data centre debt: Global lenders explore private deals and risk transfers to cut exposure to AI boom
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Banks seek to offload risk to avoid ‘choking’ on data centre debt: Global lenders explore private deals and risk transfers to cut exposure to AI boom
what this means is packaging up the data centre loans like toxic waste bombs, pre-Global Financial Crisis style
https://www.ft.com/content/08aba5e4-5834-4e79-a48d-989a2c5bad0f
archive: https://archive.is/GoRyMWhenever the 1% screw up big time, they launch a variety of exotic financial instruments to disguise the downward spiral for as long as possible.
In 1929, it was trusts (mutual funds)
https://en.wikipedia.org/wiki/Wall_Street_crash_of_1929In 2008 it was Credit Default Swaps, Collateralized Debt Obligations, derivatives, & Mortgage Backed Securities
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Banks seek to offload risk to avoid ‘choking’ on data centre debt: Global lenders explore private deals and risk transfers to cut exposure to AI boom
what this means is packaging up the data centre loans like toxic waste bombs, pre-Global Financial Crisis style
https://www.ft.com/content/08aba5e4-5834-4e79-a48d-989a2c5bad0f
archive: https://archive.is/GoRyM@davidgerard Gosh I wonder what happened after they last did things pre-Global Financial Crisis style
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Banks seek to offload risk to avoid ‘choking’ on data centre debt: Global lenders explore private deals and risk transfers to cut exposure to AI boom
what this means is packaging up the data centre loans like toxic waste bombs, pre-Global Financial Crisis style
https://www.ft.com/content/08aba5e4-5834-4e79-a48d-989a2c5bad0f
archive: https://archive.is/GoRyMOh wait, I've seen this one before!
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@davidgerard I can just imagine these toxic waste bombs exploding during the worst oil crisis ever and we are so fucked because the dumbest motherfuckers are in charge of everything it was nice knowing ya 🫡
@takosix @davidgerard it takes decades. The 2008 was engineered in the 70, pumped in the 80-90 and started to cripple everything in the 2000s. I don't know, that's what the Big Short movie taught me.
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Banks seek to offload risk to avoid ‘choking’ on data centre debt: Global lenders explore private deals and risk transfers to cut exposure to AI boom
what this means is packaging up the data centre loans like toxic waste bombs, pre-Global Financial Crisis style
https://www.ft.com/content/08aba5e4-5834-4e79-a48d-989a2c5bad0f
archive: https://archive.is/GoRyM -
@davidgerard ”cavaliers of credit”, anyone?
fyi archive link doesn’t work
@gimulnautti works here. try https://archive.ph/GoRyM - or curse DNS
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@davidgerard is that good?
@pikesley the *best*
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@takosix @davidgerard it takes decades. The 2008 was engineered in the 70, pumped in the 80-90 and started to cripple everything in the 2000s. I don't know, that's what the Big Short movie taught me.
@splinux @takosix I detail the cluster-clusterfuck a bit here
AI winter is in the air! But we think the AI bubble keeps going until 2027
After two years’ wait, and Sam Altman talking up how scary smart it was, OpenAI finally released GPT-5! And it was … meh. It could program a bit better? It didn’t do anything else much better…
Pivot to AI (pivot-to-ai.com)
looking like 2027 was the correct number
we can hear the screeching machinery noises already
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@whoosh now you might think
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@davidgerard Gosh I wonder what happened after they last did things pre-Global Financial Crisis style
@Ailbhe it was very cool and everything worked out *fine*
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@splinux @takosix I detail the cluster-clusterfuck a bit here
AI winter is in the air! But we think the AI bubble keeps going until 2027
After two years’ wait, and Sam Altman talking up how scary smart it was, OpenAI finally released GPT-5! And it was … meh. It could program a bit better? It didn’t do anything else much better…
Pivot to AI (pivot-to-ai.com)
looking like 2027 was the correct number
we can hear the screeching machinery noises already
@davidgerard @splinux @takosix
When Koch launched a venture capital outfit, Silicon Valley publicly went hard right.
https://www.axios.com/2017/12/14/koch-tries-its-hand-at-venture-capital-1513277500First started noticing the AI hype cycle & techno-fascism go into overdrive after #PrinceBonesaw visited Google, Thiel, Apple etc in 2018.
The fossil fuel industry launders its cash via the tech sector, before its fossil fuel asset values collapse, as renewables take hold.
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Hopefully pension managers are smart enough by now to avoid that trap, .... and aren't corruptly in some complicit role.
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Banks seek to offload risk to avoid ‘choking’ on data centre debt: Global lenders explore private deals and risk transfers to cut exposure to AI boom
what this means is packaging up the data centre loans like toxic waste bombs, pre-Global Financial Crisis style
https://www.ft.com/content/08aba5e4-5834-4e79-a48d-989a2c5bad0f
archive: https://archive.is/GoRyM@davidgerard Thanks for the archive. Who will pay for the power those datacenters use? Here is another late reminder that cities need to own and control their use of power. I will of course boost this, if only because it includes an archive link.
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@davidgerard Thanks for the archive. Who will pay for the power those datacenters use? Here is another late reminder that cities need to own and control their use of power. I will of course boost this, if only because it includes an archive link.
@indyradio these things have every problem you can think of, these loans are *bad* and will default, the banks *know* this, and they're working out who to fob the toxic waste off onto
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@indyradio these things have every problem you can think of, these loans are *bad* and will default, the banks *know* this, and they're working out who to fob the toxic waste off onto
@davidgerard
Rates have already increased grandly everywhere.
Too obviously, you and I are being made to pay. -
Banks seek to offload risk to avoid ‘choking’ on data centre debt: Global lenders explore private deals and risk transfers to cut exposure to AI boom
what this means is packaging up the data centre loans like toxic waste bombs, pre-Global Financial Crisis style
https://www.ft.com/content/08aba5e4-5834-4e79-a48d-989a2c5bad0f
archive: https://archive.is/GoRyM -
Banks seek to offload risk to avoid ‘choking’ on data centre debt: Global lenders explore private deals and risk transfers to cut exposure to AI boom
what this means is packaging up the data centre loans like toxic waste bombs, pre-Global Financial Crisis style
https://www.ft.com/content/08aba5e4-5834-4e79-a48d-989a2c5bad0f
archive: https://archive.is/GoRyM@davidgerard oh ffs- this does not end well
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Banks seek to offload risk to avoid ‘choking’ on data centre debt: Global lenders explore private deals and risk transfers to cut exposure to AI boom
what this means is packaging up the data centre loans like toxic waste bombs, pre-Global Financial Crisis style
https://www.ft.com/content/08aba5e4-5834-4e79-a48d-989a2c5bad0f
archive: https://archive.is/GoRyM@davidgerard 20 years ago the banks were able to sell the CDSs because they lied their asses off about what was in there and the credit rating agencies went along with it. How good are the investors' memories? Do they think 'fool me once' or 'this time is different'?
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@davidgerard 20 years ago the banks were able to sell the CDSs because they lied their asses off about what was in there and the credit rating agencies went along with it. How good are the investors' memories? Do they think 'fool me once' or 'this time is different'?
@maccruiskeen the average memory span of a trader is about five minutes, so
