Economy's looking wobbly eh?#US #economy
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Alphabet sells rare 100-year bond to fund AI expansion as spending surges
From https://www.reuters.com/business/alphabet-sells-bonds-worth-20-billion-fund-ai-spending-2026-02-10/
Yeahhhhhh OK.
#US #economy #bubble #AIBubble #AI #GenAI #GenerativeAI
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Alphabet sells rare 100-year bond to fund AI expansion as spending surges
From https://www.reuters.com/business/alphabet-sells-bonds-worth-20-billion-fund-ai-spending-2026-02-10/
Yeahhhhhh OK.
#US #economy #bubble #AIBubble #AI #GenAI #GenerativeAI@abucci Motorola issued its 100-year bond the year before Nokia overtook it as the biggest seller of handsets. Three years later, Motorola was losing money on every handset it sold. Within ten years of the bond, the company split to avoid a selloff. Alphabet knows all of this because they bought Motorola Mobility two years later.
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@abucci Motorola issued its 100-year bond the year before Nokia overtook it as the biggest seller of handsets. Three years later, Motorola was losing money on every handset it sold. Within ten years of the bond, the company split to avoid a selloff. Alphabet knows all of this because they bought Motorola Mobility two years later.
@lrhodes@merveilles.town The history of these is quite wild. I believe Motorola was the last tech company to issue a century bond before Alphabet.
One thing it says to me is that Alphabet is not expecting the explosive profits from AI that the industry has been suggesting are forthcoming. Convertible bonds are what would allow investors to take advantage of AI upside. Century bonds are traditionally issued by slow-growing, stable businesses like Ford or Coke. There's no way for me to know for sure, but it feels like a desperate confession.
I hadn't remembered that Alphabet bought Motorola Mobility so perhaps they even had a ready-made playbook on hand. Interesting.
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Google and Microsoft offer lucrative deals to promote AI, but even $500,000 won’t sway some creators
From https://www.cnbc.com/2026/02/06/google-microsoft-pay-creators-500000-and-more-to-promote-ai.html
Echoes of Matt Damon shilling crypto.
If the organic demand for AI were as high as we've been led to believe, what's with the big paychecks to shill it?
#US #economy #bubble #AIBubble #AI #GenAI #GenerativeAI
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As a ratio with the general S&P 500, Microsoft is at the level it was before ChatGPT launched. Any relative advantage one might have had from long-term investment in Microsoft instead of an S&P 500 index has been erased.
#US #economy #stocks #CasinoCapitalism #AIBubble #AI #GenAI #GenerativeAI #ChatGPT #GPT #Microsoft
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Notice the takeoff between Q3 2024 and Q1 2025.
Permalink: https://fred.stlouisfed.org/graph/?g=1RGjU
#US #economy #uncertainty
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Blackstone’s Flagship Private Credit Fund Hit by Record Redemptions
Blackstone Inc. is allowing investors to redeem a record 7.9% of shares from its flagship private credit fund, the latest sign of unease in an industry that’s faced a wave of withdrawals.
From https://www.bloomberg.com/news/articles/2026-03-02/blackstone-allows-investors-to-pull-record-7-9-from-bcred-fund
Some private creditors have been refusing withdrawals; that plus record levels of withdrawals does not suggest health. This sector is a possible source of whatever asset crash comes. So-called private credit is basically banking without banking regulations. We've known for a century now that banking without banking regulations predictably leads to the kinds of crashes that banking regulations were designed to forestall.
#US #USEconomy
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