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It is strained analogy, heavily. I am not paid by Toyota. I am vetted for my ability to pay the loan. Me buying a car with borrowed money is not circular financ
by watwut 2mo ago
It is strained analogy, heavily. I am not paid by Toyota. I am vetted for my ability to pay the loan. Me buying a car with borrowed money is not circular financing.
If most of Toyota earnings went from money they borrowed to me, it would be an issue. But, in fact, that is not how Toyota business works.
- fooker 2mo agoCar manufacturers, famously, have a pretty decent fraction of their revenue coming from their financing subsidiaries. > I am vetted for my ability to pay the loan Exactly! Now see the article we are commenting on. Nvidia reduced the loan amount, presumably because they had doubts about OpenAI being able to pay it back. The framework used to loan you money for buying a car and loaning a company billions of dollars to buy GPUs is largely the same. That's one of the accomplishments of modern economics. Of course it can and does fail, but everything can go wrong.
- watwut 2mo ago> Car manufacturers, famously, have a pretty decent fraction of their revenue coming from their financing subsidiaries. Which is not the same thing as circular financing we are talking about here. Yes, if you abstract everything enough, everything is exactly the same as everything. But that does not mean it amounts to meaningful argument.