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How are these "circular deals" different than Boeing (and other heavy civilian equipment makers) providing financing on purchases? My point: Is this simply clu
by throwaway2037 1y ago
How are these "circular deals" different than Boeing (and other heavy civilian equipment makers) providing financing on purchases? My point: Is this simply clutching pearls over the AI/LLM bubble, or is there some substance to this concern?
And another: How does it compare against the new breed of Bitcoin treasuries, like Strategy (MSTR.OQ)? As I understand, Strategy uses secondary offerings to continuously see more shares, then uses the capital to buy more Bitcoin.
- f1shy 1y agoThis happens also with automotive companies. Peugeot has its own bank, which lends money to people buying peugeots. The big difference: is not circular. The bank is a bank, the OEM building cars build cars. The bank makes money by lending and cashing interest. The car maker by selling for profit. The money goes from bank to OEM, and not the way around, no circle. I do not know the specifics of Boeing though.
- dh2022 1y agoBoeing uses Export / Import bank to finance some of its sales: https://www.exim.gov/news/export-import-bank-united-states-board-directors-approves-nearly-297-million-transaction https://www.exim.gov/news/export-import-bank-united-states-b... https://www.reuters.com/business/aerospace-defense/us-export-import-bank-says-board-backs-811-mln-loan-guarantee-aid-boeing-sale-2022-06-17/ https://www.reuters.com/business/aerospace-defense/us-export... https://www.cato.org/regulation/fall-2015/us-export-import-bank-boeing-value-friends-high-places https://www.cato.org/regulation/fall-2015/us-export-import-b...
- lucianbr 1y agoDidn't Boeing's deals turn out to be bad?