Risk is rising as big tech companies like Oracle — the ultimate financial source of the Ellison media empire — need to turn to the bond market for staggering sums to finance data centers.
And stolen resources.
Is it borrowed money or is it actually fictional non-existent money?
I think it’s both. They borrowed money on the future of AI.
Or is it money that has now been turned into fictional non-existent money, because it was stolen from our own future, where it was previously being held (we thought) safely in trust for us. They’re stealing the money from us. From our taxes, from our government funds and institutions, from our pensions. It’s our money. At least it nominally was, before all this happened. We’re being looted. The robbers are in our vault, they are packing our money into bags labelled “AI” as we speak.
Both is the same. The only difference might be who is holding the bag in the end.
The money being spent to build data centers, buy equipment and electricity is real. The fact that openAI owe softbank $40bn is real.
The future returns from these present day expenditures are imaginary. Whether softbank get their loan back is speculative. Equity raises are even more so.
The entire world is running on borrowed money
Yeah, that title doesn’t make any sense. Do they mean AI companies are moving from equity to debt financing? I can’t get to the article (paywalled).
What’s cool is we’ll soon be propping these shitbags up with tax money, so the whole thing doesn’t go bankrupt.
Too big to fail. Privatize the profits, socialize the losses. Unless we can vote in enough representatives that won’t put up with that absolute bullshit.
We can also mobilize, and get very armed as a deterrent to illegal violence towards protestors.
Yeah, this is exactly the problem with monopolies. They got too big to fail and they expect a fucking bail out from the taxpayers every time.
We should let them fail. We should break them up in a smaller pieces. The pieces that don’t make any money disappear. The ones that have some financial stability should continue to exist.
But the true purpose of capitalism is efficiency through Consolidation. The only way to limit capitalisms damaging affects is by regulation. Which will never happen in our current environment because the capitalist oligarch scumfucks bought all parts of the government in order to continue to receive free money from the banks and the government when they fuck up.
Oh by the way, they also want to take all the proceeds from their ludicrous stoxk valuations when the stock market is good and they want to take your pension fund when the stocks tank because they fucked up and spent all of everyone else’s money.
Maybe if we don’t pay them out this time private equity will learn something and stop buying and ruining companies in order to invest the ridiculous proceeds into stupid risky speculation on unproven technology.
No worries, it’s only American tax payers footing the bill and they voted for this.
You mean we’ll be in the streets when they try to right? Because just being defeatist about it is an absolute pathetic take.
Fun fact, over half of the S&P 500 have market caps over 10x revenue.
This has not ended well for companies in the past.
::: capitalism ::: is running on borrowed money.
If we’re counting training material and the environmental cost they’re passing onto everyone else, also stolen money.
A.I. Is Running Out of Borrowed Money. FTFY.
Looks like the bubble is about to burst, oof
Maybe that’s why the stock market is down. Billionaires are selling and cashing in from their own stocks. They know the bubble will burst soon enough.
Soon it will be running on tax dollars. That’s the only way this ends.
It really doesn’t have to end that way. Those shithead rich who threw their money into this can just take the L, and not beg for a bailout.
Yeah… Sure. Except that’s not how capitalism actually works. See capitalism is just socialism for the rich.
Ok… but we can take action to make sure they dont just get a bailout for being the failures that they are.
What do you suggest?
Are you armed? If the answer is no, there is an action you can take. Learning to safely use and store firearms takes time.
Having a labor force with the means to defend itself as a deterrent is incredibly important.
National security and such
So are most citizens.
*US-citizens
r/USdefaultism
At a quick search the total debt for all US households is 18.8trillion.
For AI tech companies that is 0.7t, though this probally doesn’t include shadow banking credit, which reports say is estimated to be dangerously high.
The that that these numbers are only one decimal order apart is despicable. We’re talking a handful of AI megacorps vs literally every single individual.
crash is coming. not here yet but these businesses cant manufacture acceptance
What would be consequences of a crash?
One thing I’m thinking is that a crash would likely lead to higher interest rates for everything… but fossil energy is also highly capital-intensive, too, and runs only on cheap borrowed money, too, therefore… wait it is hard to grasp how that could turn out.
Anyone has tips for potato gardening?
ram prices would tank, thereby lowering prices on everything that uses them for one
why would they tank? factories are making different kinds of chips for AI hardware
We could have prevented this, but the boomers were cheering that their sons have to go back to the factories from all the office jobs, AI promised to automate…
And at some point they’ll claim it back
