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Joined 3 years ago
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Cake day: June 22nd, 2023

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  • The 2008 bailout happened because it was the banking sector that was exposed. If the consumer banks fail, everybody’s accounts go up in flames.

    Part of getting that bailout was that the banks had to restructure to insulate commercial banking from investment banking. Supposedly the investment arm can now get taken out, and the damage to the commercial arm is limited. I’ll believe that when I see it. The big question at the moment is “how exposed are the banks?”.

    Oracle, Nvidia, Microsoft, OpenAI, Anthropic are all massively exposed. Nvidia and Microsoft might be big enough for a decimated version of themselves to come out the other side. Everyone else is going to the wall. No need to bail them out though. That’s a contained explosion.

    If the bank are making loans of hundreds of billions thinking they’re sure fire money makers, but actually they’re piles of shit, then it’s 2008 again. That’s when we see if they really protected the commercial arms of their banks.


















  • I think this layout is 100% about S&P downgrading Oracle’s credit rating to one step above junk. They’re on the hook for the WB acquisition and the data centre build out for OpenAI, both of which look hugely negative. Wisconsin (data centre location) just sent the a bill for $7B because they don’t trust oracle to pay the future costs to the state the development would incur.

    With no credit rating, and not much liquid cash all they can do is cut costs. Hence layoff.


  • It’s not shitty enough to completely leave your ethics at the door. You might need to take a little less pay, or work on something less interesting (although we’re talking about Oracle here).

    Somebody who landed a job at Oracle had options. That is until today. Now they have 21,000 other people to compete with.

    It’s the people somewhere like Nvidia I have some empathy for. They thought they were building gaming tech and they’ve ended up building the apocalypse.