Too big to fail. It’s Deja vu all over again.
But is it really?
Who’s talking about this outside this post?
Under any other administration I wouldn’t believe such a thing would be a possibility. I can see Trump offering funds in exchange for relabeling products “Super AI”.
His pitch was “Super Intelligence”, because that’s way dumber.
Oops that’s right. Thanks for the correction. I’m somewhat relieved I half purged that term from my mind but when you’re right you’re right!
America Intelligence
Who was in charge ehen banks came begging for money in 2008?
Bush?
Guess again.
It was Bush’s policies that created the mess, but (😱) it was Obama who allowed i) the bailouts the happen, ii) the actions to go unpunished, and iii) the system to continue.
https://youtu.be/wb9qikdg3M0&t=14m20s (FD Signifier)
glass steagal passed under clinton
You stated 2008, Obama wasn’t sworn in until January of 2009. I’m right, you just need to ask better questions. Also I expected this type of response since it seems like a bothsides was being setup. But please, do elaborate with the dates confused.
I thought Bush signed the TARP law to give bailouts and Obama signed Dodd Frank that cut the amount of the bailout.
I also thought the Obama bailouts were largely if not completely repaid with interest, albeit with interest rates that were close to zero at the time.
Also Dodd-Frank was a good law and gave us the Consumer Financial Protection Bureau. Which until Trump and Doge killed it, was actually putting a small dent in financial crimes and credit card predators.
I don’t know the total amount repaid. AI suggested all but $15B, out of $426B paid out from the treasury. Also other guy said Clinton signed glass-steagall, minor note: he repealed* it.
Obama was far better than Trump and Bush, but I think he dropped the ball on that one, and on Russia’s annexation of Crimea. He was in a strong position to empower the people, but he kinda left the door open for authoritarianism.
Was it the best decision to continue Bush era policy, hang millions of families out to dry, deny accountability, and allow neoliberals to pursue their mythical infinite growth? Just… bygones?
I agree that the ballots should have focused on fixing the inequality and should have fucked the billionaires who caused these problems.
Ukraine was trickier at that time though. They were still uncertain who was going to run Ukraine. Poroshenko was a bit questionable but at least started to defend Ukraine, but had serious problems with corruption too if I recall. Zelenskyy wasn’t in power yet and propping up the wrong guy was risky.
The problem is that the Obama team never seemed to think Trump had a chance and figured Clinton would be able to work on all the problems it was in the middle of. That was the biggest mistake of his presidency IMO. that and allowing McConnell to steal the Supreme Court
They seemed to learn their lesson and changed the strategy in 2020. We saw much faster recovery when we bailed out the people than when we bailed out the businesses.
The difference is that the banks are actually necessary for the economy to function. And mitigations were put in place to limit that exposure in the future. Mitigations that have been stripped back again in recent years because of billionaire lobbying.
None of the AI companies are necessary for the economy. And the big players that stepped into the quagmire aren’t over leveraged enough to actually be in danger. Only the AI-only companies are in danger. The mega corps like Meta, Microsoft, Google, etc. would be hurt but would survive just fine.
And the real difference is also that all of those bailouts were fully paid back with interest.
They’re going to try to frame it as a national defense issue; like automotive companies are. My guess is they’d bail out SpaceX/xAI in exchange for personal enrichment if needed.
I can’t see them getting bailed out. That would be political suicide for either party. AI companies aren’t creating jobs, they manufacture nothing (like autos) and they’re not our financial backbone (like banks).
Would it still be political suicide if it was bipartisan? They’ll make up a million stupid reasons, unleash their army of bots to promote it, and try the same thing Facebook did in 2016.
We’ll be told that democrats and republicans both support bailouts, but that we have to support democrats because republicans worse. On a dwindling number of policies democrats never fight for.
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.
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.
Well crud. I hadn’t seen that angle.
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.
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.”
And seemingly
“If the bank owes $100 billion, thats the taxpayers problem”
Needs to add if you owe the bank $1 Billion, then that’s the governments problem.
That’s anything but capitalism. Capitalism says if you fail you die. If that takes other people down, so be it. But bailouts were never supposed to be a thing.
Sounds great! Where do I find a capitalism like that?!
Also there could be contagion to the big banks and institutional investors (think pension funds) from the bond sales and the construction loans for the data centers.
An entire financial industry ruined by bad loans to a single market you say… Wait, I think I’ve seen this one…
They already have had trump rumbling that they are key to “national security”. So clearly getting ready to bail them out.
*billion
Once again, the American middle class, or what’s left of it, will be the ruling class’s personal piggy bank.
With what? We have nothing left
Has that ever mattered?
Your labor, of course.
Unemployed kek
There is so much worse it could still get.
I bet they were trying to become too “integrated” to fail.
It’s probably a pump and dump, those in the know probably sold high, they’ll use it to convince board members to release more stocks or something then double down… Wait until the price bounces back and pull out more loans on an higher valuation.
They’re masters of this type of financial trickery. I doubt the small fish crashing will bother the data center builders who are killing the planet and corrupting culture/society/politics.
Well, at least we can always blame immigrants, poor people, and teachers for the financial collapse, just like last time.
Instead of occupying WS, what you think the chances are someone will test its, or silicon valley’s, degree of combustibility?
Did my guy p-stews just deliver this blessing on his way out the door?
Capitalize profits
Socialize losses
When things are going great, give everything to the rich … when things eventually go badly, let the poor pay for everything. Why would the world want to hurt or take away the rich man’s wealth?
And they’ll get them. Because that’s cruelest towards the people.
Well, it makes it a nice bookend. After all, they got a bunch of taxpayer money to begin with, so it’s only fair they get a bunch more at the end.
(Scummy, corporate welfare arseholes).
damn. maybe everyone involved in robbing us like this shouldn’t be allowed to do that again.
Intel lost 29%, 29!!! FFS it’s incredible!
That was pretty insane yes, but ServiceNow also dropped 30%.
Google dropped about 10% but it was enough to put them back to last years October stock value. No gains this entire year for stock owners at all.
Stocks are feeling dangerous as fuck on report day. I would recommend people to sell before reports in this environment.
Next week we have Apple, Amd and Qualcomm.
Service now should be a penny stock that shit sucks ass
Their IPO’s are already socialising the debt they gathered, right into your stock portfolio/ retirement fund
Well there were conversations that AI should be public… Publicly bailed out by taxpayers with a negative return on investment.
