>funds own shares in private companies that they can't sell>since there is no open market for these shares, they get to claim it's worth any value they claim it is unless the company goes bankrupt>how do I get cash from this if nobody's buying??>just take a loan against it!>banks know these shares might be worthless and won't loan you money?>just have a credit rating agency rate it AAA+++ Super Great and have a fake insurance company that doesn't have the necessary money reserve to insure it sign a paper saying they'll insure the loan>bankers know the insurance is bullshit, but they need to hit their KPI to get bonuses and there are no FDIC/SEC/Feds rules against it yet, so they give you the loan>the shares are worthless, there's nothing to collect when you default on the loan laterThis is what's going on right now in finance. It's 2006 with subprime mortgages again.
>>539270263It is worse than that when you consider the unwinding yen carry position which invested in it, the circular financing underlying a lot of the businesses the credit is funding, the inability to deliver (good for mankind) on energy for data centers, the bank exposure and fact they are trying to offload the shit to peoples' retirement accounts...again, in passive investing they can't avoid, the shadow bank exposure which banks are the ultimate underwriters of, etc. Good thread. BUMP.
Google actually did this with anthropic last quarter. Anthropic is private but its "value" is 1 trillion, google owns 20% so they said they made 200 billion dollars.
>>539270638Alphabet didn't do that because they wanted to, they did it because they had to, due to modern mark-to-market pricing rules.
>>539270517I'm always kind of afraid the baking system is just going to blow up one day. In related concerns: the USA government is going to default one day it's a matter of time.
>>539270263None of this *ever* stopped after 2007. It's far worse (and the screencap barely scratches the surface)Interleveraging of financial instruments and speculative debt holdings is far more rampant today than 2 decades ago. Worse still is nobody wants to buy the debt<--that is the foundation of the entire global jenga ponzi system.
>>539271216not if ai and data centers are the paradigm shifts that finance expects them to be
>>539271643If it was that awesome a technology they wouldn't be selling shares to losers in the regular exchange. It's the biggest bet in human history at this point and if it doesn't pay off we are looking at a giga happening for the economy
let the sky fall
new jewish magic just dropped
Honestly it's not even jewish magic, it's just desperate at this point, the mortgage lending crisis at least had the actual houses as collateral. Wtf is this lol
>>539270263kek Jews never fail to invent fake stuff to sell
>>539274446>collateralThere isn't any in 2026.Nobody is buying the global debt.OP has zero clue how actually fucked everything is rn>>539270517>circular financingThe post-1990s(nineties) global economy is *interleveraged*.Using myriad debt instruments that never existed prior to the 1980s(eighties)the post-1970s(seventies) global economy is Financialized, totally walled off and segregated from the Real Economy of goods-services-commodities in which we all subsist.https://en.wikipedia.org/wiki/Financializationhttps://en.wikipedia.org/wiki/Derivative_(finance)All wealth today in the 21st century is generated wholly from (no, not 'work', 'capital' or 'labor') *speculative debt instruments*. Global economic activity today is solely exclusively only about making money off of money, alone.Effectively the global economy today is a gigantic casino of investment banks (officially became that with the 1999 repeal of Glass-Steagall).Most corporations today shovel their profits into (no, not manufacturing capex improvements of their own brand product/service output) *buybacks of their own stocks* to artificially boost valuations. Their own physical real product, output itself may as well not exist at all.>"The real money to be made in the world today is not by producing anything at all. It's simply by forms of speculating — basically making money from money. That's the most profitable, and by far and away the biggest form of economic activity that exists in the world today."— Nick Dearden, quoted in the film '97% Owned'
>>539270263>>539270517Not my problem.
