My favorite comment on the article is “The problem with capitalism is that you eventually run out of other people’s money."
TO BUY HARDWARE WITH A 3 YEAR LIFESPAN. THREE YEARS. 3.
Inverted yield curve in physical form?
Yep, but at least there’s cookies. They cost $11 each.
and they’re packed with Olestra ™
Oh man I remember that brief era lol
How could one forget?
Perhaps
why can google whore themselves out in gross, unbecoming ways? but if I want a mouth hug from Tammy on the block downtown we’re gonna be under fire for striking a lil deal
The longest portion of the offering, a 40-year bond, is expected to yield 0.95 percentage points over US Treasuries, down from 1.2 percentage points during initial talks, the people said.
Gotta be really bearish on treasuries to consider this a good idea.
Certainly the rate cut from 1.2 to 0.95 implies Google is becoming more bearish on treasuries over time.
a bit confusing since there are no 40 year treasuries. Even more bearish for US solvency if that is 0.9 points over 30 year.
So they know that AI is going to be unprofitable for near to medium term?
I think the only thing we can say they believe for sure is that a fool and his money are soon parted.
How can i short this?
start a large company, force all the employees to use the cheap venture driven tokens now to get more done with less talent then fire everywhere when the bubble pops.
Traditionally, you need to find someone to loan you money with the bond as collateral. Then you promise that person the bond as repayment of the debt + interest, with the expectation that you can re-buy the bond at a future date for much less than you could today.
Fr, Resist and Unsubscribe.
Selling hot air heated by wasting electricity in a data center.
I’ve thought about that, actually. Could you use waste heat from a datacenter to, say, heat water for a laundromat or something?
You would think a laundromat would use waste heat from the dryers to heat their wash water (or even the room) but I’ve never seen that.
That waste heat is very humid, which causes corrosion and mold issues.
The last company to do this iirc was Motorola in 1997. You can buy them on the secondary market now for about 80 cents.
80 cents for how much initial value?
They’re actually around 80 bucks, versus an initial value of a cool hundo. But they also pay out like a 5% coupon rate annually, so if you had bought them in '97 you’d be slightly beating inflation.
So those are associated with Motorola Solutions now, or did the debt move to Lenovo?
Yeah, the debt belongs to Motorola Solutions now. Although it would have been very funny if they somehow stuck Lenovo with it.
Does that mean 5% of 80 cents or 80 bucks?
Coupon rate is paid on the principal - assuming the hundo is accurate then it’s $5/yr. If you think Motorola will be around in 14 years then you’d have your investment back. If you think they’ll be around in another 70 years you get $350 + $100 because when it matures they need to repay the bond.
It’s neither.
A company with $130 billion in cash reserves is floating 100 year bonds.
So much for billionaires reinvesting profits to trickle down in the economy. Now they hold onto profits, calling in suckers to bet for them and not promising results until all of them are dead.
There were some stats floating around after the massive 210-280BN detaxation for rich people here in France, and it was that a whopping 3% was reinvested.
…you know that was always how trickle down eonomics was going to be, right? Ift has never ad will never work
I’m not arguing for trickle down. I’m using their own arguments against them.
We’ve all heard “it takes money to make money.” But rich people know it’s better to use other people’s money.
It’s better to use what you can use.
Well, you should consider that they plan to spend ALL of that cash on hand, PLUS the amount they have to borrow. And they plan to spend all of that in 2026. Their capex expenditures are planned to exceed their estimated operating cash flow.
Guess I won’t be upgrading my phone this year. And neither will you. Or anyone.
This is some true believer shit.
Google launched less than thirty years ago.
At the current rate of deterioration, it’s not exactly certain to what extent the planet will be able to sustain human life, much less whether a much loathed spyware company will still be around to pay the bills.
Is Google “much loathed”? It’s thanks to Google that the world’s largest browser engine and operating system are both open source. Yes we can list bad things they’ve done but they’ve also done a lot of good.
Our minds like to process entities/companies like Google as human beings, which allows us to assign emotions to these things. But the truth is, they are nothing but a glorified Chinese room experiment.
People made the largest browser engine and operating system, not Google. Without people, the company is nothing. A company like Google is nothing but a set of self operating rules.
I love/loathe Google just as much as I love/loathe my weekly /tmp cleaning cron job. Even if it accidentally nukes my files, it’s just doing as it’s designed to do.
You design a system to maximize shareholder value, it will do exactly that without caring a single thing about human ethics.
Holdovers from when “don’t be evil” was still a thing.
Both Android and Chromium are rapidly deteriorating in regards to FOSS. Yes, they are technically FOSS, but in the stranglehold of Google who keep carving away more and more freedoms.
Just consider Google Play Integrity and Manifest v3 (in regards to e.g. Adblocking) as two obvious examples.
If Google could, they’d instantly close the Android sources and remove the ability to adblock on Chromium.
It is remarkable that there are still people with whom their goodwill is not entirely spent. They really had us in the early years.
100 year bonds to finance purchase of GPUs that fully depreciate in 5 years?
Not to mention destroying the home GPU market at the same time.
While using massive amounts of power and slurping up tons of drinkable water.
All to produce AI slop that nobody wants.
We can sell new 100 year bonds to pay the interest on the old ones.
What about, I mean, think about it, 1000 year bonds?!!
Perpetual bonds are an actual thing
Someone appoint this person to the Federal Reserve
Can I sell 100y bonds too? It sounds like an amazing opportunity
You have to pay the interests every year though so yeah why not? I’d invest in you!
Well, it’s not uncommon in some countries with perpetual loans for individuals, so sure!
It’s usually a matter of agreeing the right interest and offering the right security. You will get a worse deal than Google.
Sure! You can sell whatever you like! The trick is finding a buyer.
Hello good sir, would you be interested in giving me one million dollars for these exclusive, limited-time offer bonds which will mature in 100 years for a whopping 5% ROI? That’s $50,000 in free money†. Your grandchildren will thank you!
~† not adjusted for inflation~
I would pay like $1 for $100 100 year bond from a random account on the fediverse just for the novelty, tbh.
Edit: actually I should probably be asking more like $800 on a one dollar investment now that I think about it. Compounding interest go brrr.
I’ll promise to give you anything in 100 years if you gave me your $100 now. It’s a fair offer right?
They are looking for the real suckers, that think things are going to continue on like this for 100 years.
I mean jesus, for a minute lets forget about climate change, and how increasing climate instability will fuel more political turbulence, how feedback loops are accelerating climate change beyond our predictions we are fed that were always undershoots to justify business as usual.
Just looking at politics and business now, the rich have taken from working people more than is sustainable. Not even directly taking, stated inflation is lower than real inflation, so we take a pay cut every year on top of everything else, and on top of consolidated industries that have conspired to increase their share of profits, and a government unwilling to enforce anti trust laws. A court system unwilling to check corporate interests, but willing to allow the government to go full nazi.
The economy is not sustainable as such. It’s getting worse for working people, that can’t afford professional services even with good jobs now. Let alone the low wage workers. Health care and drugs are beyond any semblance of reason. People have to give away their life savings for routine end of life medical problems that used to cost a reasonable amount of money.
There is no way the economy holds for 100 years. A 10 year bond might even be getting a little optimistic. The government is openly corrupt, working people don’t have the money to live a dignified life for the first time since the great depression in the US, and the rich are showing no sign of not taking exponentially more of economic output with their corrupt governments in tow.
Any fool that thinks dollar amounts are a good store of value as such to receive for the next 100 years is a sucker.
There are some very old contracts still not terminated around. From Netherlands before William of Orange, or from England before Cromwell. Those of nation-states (WWII lend-lease of the famous ones).
working people don’t have the money to live a dignified life for the first time since the great depression in the US,
The US is not even close to that. Your comment be proof of that, you don’t even understand how life was there and then, despite that being history of your country portrayed well enough in many movies and books.
That said, there are, of course, complications to be expected.
You are repeating information spoon fed to you by the ones that have changed the inflation rate to understate it, which has led us to become compound fucked to the 50th power.
A minimum wage job, 1 minimum wage job, paid for a family in 1950. Bought a house, a cheap car, doctors, dentists, optometrists, other professional services people can’t do themselves, even able to go out to eat for a burger.
After the changes, it’s become less and less true, by the 1980’s it was undeniably true that wages no longer paid for what they did. By now it is a joke, they tell us our buying power has never been higher, by the numbers that is true.
I know it feels warm and safe living up the backside of the billionaires, but there is no future going further up, come straight back and join us in the sunshine brother!
Didn’t that magic 1950 salary came out of like abusing the rest of the world in different ways though? Like the petro dollar, forcing everyone to dance to your tuba and so on?
It partly came from taxing the hell out of the rich. Reagan put a stop to that in the 80s.
The petro dollar wasn’t even a thing until the 70s.
The high living wage came from unions. And government taxing higher incomes progressively more, and taxing corporate profits more than personal paychecks, that made obscene profits progressively taxed more. It was caused by people that worked jobs being able to buy the same goods they produced, increasing output all around.
I don’t know what you are even trying to talk about here. Conflating vague foreign policy with living wages. Seeing as foreign policy got worse as living wages evaporated it would suggest you are off base there.
A minimum wage job, 1 minimum wage job, paid for a family in 1950. Bought a house, a cheap car, doctors, dentists, optometrists, other professional services people can’t do themselves, even able to go out to eat for a burger.
Yes, in 1950, damn right. Now do 1930.
by the 1980’s it was undeniably true that wages no longer paid for what they did
Still better than 1930.
but there is no future going further up, come straight back and join us in the sunshine brother!
I dunno, there might not be any sunshine stored for me, but it’s still not 1930.
What is your point? Mine is in the post war years we achieved the most prosperous working class the world has ever known, and the most progressive taxation which had no small part in that, and in the ensuing decades brought reason and justice even more to the economy, on a scale unprecedented before that, and the rest of the western world followed.
That in 1971 that all changed and they’ve taken that all away piece by piece in an organized campaign(s). So what are you even talking about?
Mostly for white people, and mostly because the US had built out an enormous industrial base to win WWII, and also was in the unique position of not having been destroyed by the war.
Which is the typical ad hominem to respond to the unanswerable charge that the rich have taken our middle class lifestyle and replaced it with poverty, reduced even the wealthy to just getting by status. Use emotional arguments, and slander, to obscure the issue.
The one here, that because injustice existed it doesn’t count that we all had a higher standard of living that the rich took away from us, doesn’t make any sense though does it?
Explain to me, how it negates recognizing the rich have taken from working people, because society wasn’t egalitarian when working people extracted the highest standard of living ever?
…I don’t understand your comment, I think. Is pointing out historical facts ad hominem? My (small) point was that I’m not certain that the sudden prosperity that some workers in the US enjoyed was entirely sustainable. That said, the development since the seventies or so has definitely gone hard in the other direction. I’m not competent to comment on the causes, but successful deunionization, destruction of the educational system, and overseas outsourcing of everything productive are probably in there somewhere.
This is like that part in Don’t look up when the Jennifer Lawrence’s character tells her BF to wait 6 months before she meets his mother.
