• 66 Posts
  • 959 Comments
Joined 3 years ago
cake
Cake day: February 17th, 2024

help-circle

  • IMHO: one of the biggest dangers of data centers that are understated at IMO is the financial risk. Because they’re essentially just materials in a round-tripping scam that has the potential to take an entire state pension fund with it. Because, not only are they being financed with borrowed money in a round-tripping scam, which is already bad. But on top of that, this money comes from private credit, which oftentimes has none of the safeguards normal credit has. And what happens is when multiple private credit entities lose liquidity at the same time, because they have taken too much risk in the AI bubble, then the entire system can fall, like we have seen in 2008. Because that’s when the banking sector had as little oversight as private credit does today. IMO, after the bubble pops, the data centers and their immediate vicinity will look like Detroit and the American Rust Belt. The neoliberals weren’t lying, the free market really has taken care of these areas.