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.
so-called risk transfers to reduce exposure to big borrowers and free up capacity for more lending.
That sounds like it should be highly illegal.
“Hey, we know this crash is coming, and we’re going to leave you with the bill for it even though we profited enormously off of the bubble economy which directly resulted in the inevitable crash. And while we wait for that crash to happen, we’re going to continue milking that bubble for the last few scraps of profit that we can squeeze out of it, which we will also leave you with the bill for when it finally crashes.”
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.
Maybe my memory isn’t right, but I thought the big deal with the 08 crash was that few people saw it coming as the bad assets were bundled together with okay assets hiding their real risk. If AI takes down the economy, it’s not going to be surprising to most people as many people are calling out how overleveraged some of these companies are.
nah. everyone knew it was shit but back then, just like now (in fact…they still sling that same old bad collaterized debt shit from back then too)…government is captured by those profiting off of selling the stuff. once the music stops, the powers that be will pretend they had no clue, give a blank check bailout to the corpos and tell everyone else to pound sand.
we’ve done this dozens of times over by now in the US
This gives me strong deja vu for the housing crisis of '08.
That sounds like it should be highly illegal.
“Hey, we know this crash is coming, and we’re going to leave you with the bill for it even though we profited enormously off of the bubble economy which directly resulted in the inevitable crash. And while we wait for that crash to happen, we’re going to continue milking that bubble for the last few scraps of profit that we can squeeze out of it, which we will also leave you with the bill for when it finally crashes.”
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’m sure they learned their lesson…
… which is why they’re fine with it happening again.
I’d rather just buy the GPUs second-hand after the companies fail and have to liquidate…
Wait wait. Actually can I just buy some and act like it’s a gpu preorder?
I want to short the housing. I mean GPU market.
Was just going to say that…
I was also going to say that.
I bet they’re going to start selling CDO2 again, only this time the underlying debt will be data center debt instead of mortgages.
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.
Maybe my memory isn’t right, but I thought the big deal with the 08 crash was that few people saw it coming as the bad assets were bundled together with okay assets hiding their real risk. If AI takes down the economy, it’s not going to be surprising to most people as many people are calling out how overleveraged some of these companies are.
nah. everyone knew it was shit but back then, just like now (in fact…they still sling that same old bad collaterized debt shit from back then too)…government is captured by those profiting off of selling the stuff. once the music stops, the powers that be will pretend they had no clue, give a blank check bailout to the corpos and tell everyone else to pound sand.
we’ve done this dozens of times over by now in the US
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.
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.