Banks turn data centre loans into 2008-style financial time bombs

https://awful.systems/post/8275866

Banks turn data centre loans into 2008-style financial time bombs - awful.systems

party like it’s 2007 https://www.youtube.com/watch?v=LuBlliJ8QMU&list=UU9rJrMVgcXTfa8xuMnbhAEA [https://www.youtube.com/watch?v=LuBlliJ8QMU&list=UU9rJrMVgcXTfa8xuMnbhAEA] - video https://pivottoai.libsyn.com/20260511-banks-turn-data-centre-loans-into-2008-style-time-bombs [https://pivottoai.libsyn.com/20260511-banks-turn-data-centre-loans-into-2008-style-time-bombs] - podcast time: 5 min 40 sec

I can’t wait for Trump to demand tribute in exchange for a bailout. Gonna be a wild year!
“That’s as good as money, sir. These are tokens.”
“We made GoldTrumpCoin just for you.”
At least people got housing back in 08

Sooooo how do we short them?

I can see the posters now… “The Big Slop”

🎶 We’re doing a sequel, we’re back by popular demand…

(Muppets: Most Wanted was fun, I should rewatch that)

We're Doing a Sequel

YouTube
How do I keep these out of my 401k and pension
Actually a very valid question. This is how they get you.
That’s the neat part, you don’t!
I pulled all of my retirement out of the stock market. Ill probably be screwed later, but at least I know that nobody is using my money to make themselves richer.
You check what you own, especially your bond fund (government bonds are safe, if it has anything else look closely) and your investments in financial firms (see if any of them have been buying up this bad debt). Company-run pension plans are usually scams (a financial institution sells them a bunch of expensive actively managed products not a few cheap index funds) but picking the best of a bad lot still has big returns and sometimes it just takes one or two employees to get them to add something much better to the list.
The few US equities in my retirement fund don’t track the S&P500 or Nasdaq. They track an index by Solactive in Frankfurt and are weighted by float (the value of shares available for public trading) not market capitalization (the value of all shares, including the ones owned by the company). They also require that a stock be at least ten days after IPO to be included. I think they will be a more resistant to bending the rules than an American index although I would not put it past German banks to buy tranches of bad debt from the Amerikaner.
Solactive US Large Cap Index (NTR) | DE000SLA1706 | .SOLUSLCX

The Solactive US Large Cap Index (NTR) intends to track the performance of the large cap segment in the United States. Constituents are selected and weighted based on free-float market capitalization. The index is calculated as a net total return index in USD and reconstituted semi-annually with quarterly IPO reviews.

solactive.com

I sold most of my index fund and bought SCHD. It’s an etf that holds shares in companies who pay the biggest dividends. This doesn’t entirely shield you, but those bullshit “growth” bubble companies tend not to pay large dividends to their shareholders.

Nice side effect of the etf is you get dividends every quarter too

Schwab US Dividend Equity ETF - Live Performance & Historic…

Analyze the real-time and historical performance of Schwab US Dividend Equity ETF. Compare key metrics, holdings, and total returns over time with YCharts…

Looks like SCHD is not heavily invested in US financial institutions holding the bad debt which is the potential pitfall I saw. Its hard not to invest in banks since they literally have a license to make money, but a lot of them are going to lose money when the chatbot companies can’t pay back their loans.

Socially responsible investing / ESG also does pretty well at screening out the surveillance industry.