New York Times (November 18)
UBS expects “the global A.I. capex tally” will “hit $423 billion this year…and reach $1.3 trillion by 2030.” But Big Tech’s “debt-fueled spending spree” is raising concern. “Not long ago, huge investment pledges pushed the A.I. rally to new heights. But the need to borrow so many billions is beginning to rattle stock and bond investors.” For example, “shares in Oracle, and some of if its bonds, have sold off sharply in the past month in a sign of investors’ growing concerns about its long-term A.I. financing plan.”
Tags: $1.3 trillion, $423 billion, 2030, A.I., Big tech, Bond, Borrow, CAPEX, Debt-fueled, Financing, Investors, Oracle, Shares, Spending spree, Stock, UBS
New York Times (September 9)
“The crypto revolution is bringing financial services to the unbanked, but not without risks.” The crypto “market is expanding quickly — in all sorts of directions,” giving rise to new “Shadow Banks.” Crypto customers “can earn much higher interest rates than at traditional banks, and they can borrow money, using crypto as collateral, often with no credit checks,” but the potential dangers include hacks, fraud, and the lack of FDIC protection for deposits.
Tags: Borrow, Collateral, Credit checks, Crypto, Financial services, Fraud, Hacks, Interest rates, Revolution, Risks, Shadow banks, Unbanked
Financial Times (October 30)
“As the world economy slows and even Germany’s economy shows signs of weakness…. Policymakers in Germany and elsewhere should promote public and private spending—investment, above all. Huge opportunities do seem to exist. Moreover, the chance to borrow at today’s ultra-low long-term interest rates is a blessing, not curse…. In today’s economy, it is the only prudent thing to do.”
Tags: Borrow, Economy, Germany, Investment, Opportunities, Policymakers, Private, Prudent, Public, Slows, Spending, Ultra-low rates. Interest, Weakness
