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> Quantitative easing Why though? This isn't a bank run situation. Sure, it's unwise to bet against "US President does something stupid", but the rationale is
by pjc50 5mo ago
> Quantitative easing
Why though? This isn't a bank run situation. Sure, it's unwise to bet against "US President does something stupid", but the rationale is missing.
The oil situation remains very concerning, and you can't print oil.
- madaxe_again 5mo agoOh but it is. The debt that’s funding the AI buildout ends up in the oddest of places - like pension funds. If defaults occur and work their way up the chain, it’s not dissimilar to the subprime affair - and at that point it’s bail out the poor pensioners or get crucified at the ballot box. There’s lots of precedent for this over the past decades, both in the U.S. and over the pond.
- pjc50 5mo agoHow much of this is debt as opposed to equity, though? Can we have a balance sheet?
- madaxe_again 5mo agoNot readily, as the private companies are private, and the public ones obfuscate their books - and even then the question that remains is how much of that equity is funded by debt.