angel

[Hedgie @HedgieMarkets]

🦔AI companies have borrowed so much money this year that they're pushing up interest rates for the entire economy. Nomura estimates tech borrowing alone now equals 25% of what the US Treasury issues in bonds, five times more than last year. Bank of America says the surge has added about 0.3 percentage points to the 10-year yield. Bond managers are selling Treasuries to buy AI corporate debt instead because it pays more.

My Take
AI companies are now competing with the US government for the same pool of lenders, and the lenders are picking the corporate bonds. Alphabet's 30-year pays 6.4%. A Meta data center bond pays over 7.5%. At those rates, a 5.2% Treasury loses the fight for capital every time. That's one of the reasons long-term rates have stayed so stubborn even as the Fed tries to bring them down.

JPMorgan expects $5.5 trillion in AI infrastructure spending through 2030, and most of it will be borrowed. That borrowing raises the cost of money for everyone, the government, your mortgage, small businesses trying to get a loan. The AI buildout has reached the scale where it moves rates for the whole economy, and most people paying higher borrowing costs have no idea that a data center arms race is one of the reasons why.

Hedgie🤗

[angel @angelackman]

@TrollFootball Bro knew

[Andy @PositivFuturist]

Elon could literally solve homelessness tomorrow.

All he needs to do is sell his stake in the companies he created from the ground up, crashing the price and evaporating his wealth as well as the savings and pensions of workers globally.. handing the control of these companies over to short term profit interests and preventing any long term vision from being enacted..

THEN take whatever money that remains which will be nowhere near 1tn and give it to homeless charities who have never solved homelessness anywhere on earth because they’re financially incentivised to do the opposite.

Bam - homelessness solved.

The reason he doesn’t do any of this is because he’s evil.

[angel @angelackman]

@dot_61 @negligible_cap Didn’t they have an SPV with BlueOwl last year? I believe it was around 30bn to finance a data center

[angel @angelackman]

@investinguab @eurofounder Clearly video is not about Europe. How cant u tell this is obviously a joke lol. Its windows media player

[angel @angelackman]

@investinguab @eurofounder Missed the whole point lol

[angel @angelackman]

@KobeissiLetter If a deficit of this magnitude only occurs in recessions, how come it’s the favor behind unemployment not being higher? Don’t quite get the relationship

[angel @angelackman]

@KobeissiLetter What about Japan?

[angel @angelackman]

@MarioNawfal This is obviously daytime. The crash was around 12am, so timelines do not coincide

[angel @angelackman]

@AGCypher @RapidResponse47 Whats the track id