you are viewing a single comment's thread
view the rest of the comments
[–] 32 points 12 hours ago (9 children)

They tech companies themselves likely won't get a bailout, but don't rule out the Fed warming up the ol' money printer. All the borrowing for data centers, where do you think they're borrowing from. Banks, insurance companies, bond investors and private credit funds. Those first two are the key. If a too-big-to-fail bank or insurance company gets jammed up by their own bad loans to hyperscalers, you best believe they're going to the Fed, hat in hand, asking for another bowl of that sweet, sweet quantitative easing.

  • source
  • parent
  • hideshow 9 child comments
  • [–] 13 points 12 hours ago (4 children)

    Well crud. I hadn't seen that angle.

  • source
  • parent
  • hideshow 4 child comments
  • [–] 5 points 10 hours ago (3 children)

    Yeah, my understanding is that once bankers have bet more of other people's pensions and life-savings than they can cover if they lose the bet, they are in line for a bailout.

    In effect, the more catastrophic your bet is, the less personal responsibility you have to take for it.

    One of the many hypocrisies and perverse incentives of capitalism.

  • source
  • parent
  • hideshow 3 child comments
  • [–] 2 points 9 hours ago (1 child)

    In effect, the more catastrophic your bet is, the less personal responsibility you have to take for it.

    "If you owe the bank $100, that's your problem. If you owe the bank $100 million, that's the bank's problem."

  • source
  • parent
  • hideshow 1 child comment
  • [–] 2 points 11 hours ago

    What about all the major companies who have scraped their workforce to replace it with AI, so sure that it would pay off. They also can't afford for AI to go under, so they'll add to the "please bail us out" for the good of the economy.

  • source
  • parent