underscored — Underscored

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Tag:debtClear

noahpinion.blog

When they paid in cash, hyperscalers were safe — if AI revenue disappointed, their stock prices would go down, but their businesses would just keep going and they'd eventually recover their profitability. But the more hyperscalers borrow, the more revenue they'll need just to stay solvent; if the revenue doesn't arrive, they might have to default on their debt.
— Noah Smith

2w ago

honest-broker.com

Reese Witherspoon and Me

The ten most shorted investment grade bonds are now all linked to AI. Bonds don't get mentioned much by the mainstream media, but they will now determine the future of Silicon Valley—which increasingly spends more cash than it brings in. When you borrow too much, you lose control of your destiny.

2mo ago

noahpinion.blog

America is heading for a debtpocalypse

Right now, the national debt continues to explode, because the government is borrowing money just to pay the interest on the money it borrowed before. This increased debt naturally results in even greater interest costs, forcing the government to borrow even more to fund those interest payments. And so on.

5mo ago

Underscored — save the words that stop you in your tracks.

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