The Stunning Math Behind The AI Vendor Financing "Circle Jerk"

AI Is Now a Debt Bubble Too, Quietly Surpassing All Banks to Become the Largest Sector in the Market - 🔔 The Liberty Daily

(ZeroHedge)—Last week we published a lengthy article discussing in detail the current generation’s (because every generation has one, just ask Global Crossing) “infinite money” circle jerk circular deals which have become the de jour staple of the AI bubble and which, simplified, look something like this… … or, using a slightly more sophisticated variation from Bloomberg, like this… … which JPM’s Michael Cembalest described laconically as follow…

The Stunning Math Behind The AI Vendor Financing "Circle Jerk"

The Stunning Math Behind The AI Vendor Financing "Circle Jerk" “If something cannot go on forever, it will stop” - Charles P Kindleberger, “Manias, Panics, and Crashes: A History of Financial Crises”, 1978 Every six months it happens like clockwork.  The first time the AI sector was rocked over fears of low/zero ROI, and gargantuan cash burn with nothing to show for it, was June 2024, when Goldman asked point blank if Gen AI was nothing more t…

The infinite loop of money in AI: When supplier financing replaces customer cash flow - Economic Scenarios

A sober analysis of the financial “glitch” fueling the AI ​​bubble shows us that, ultimately, it is a vicious cycle of financing. Charles Kindleberger 's old adage reminds us that "If something can't go on forever, it will stop." There's no such thing as eternal growth. A maxim that, today, resonates ominously in the gilded corridors of Artificial Intelligence. The AI ​​sector, with its science-fiction promises, cyclically finds itself dealing w…

The Stunning Math Behind The AI Vendor Financing "Circle Jerk" - Nemos News Network

The Stunning Math Behind The AI Vendor Financing “Circle Jerk” “If something cannot go on forever, it will stop” – Charles P Kindleberger, “Manias, Panics, and Crashes: A History of Financial Crises”, 1978 Every six months it happens like clockwork.  The first time the AI sector was rocked over fears of low/zero ROI, and gargantuan cash burn with nothing to show for it, was June 2024, when Goldman asked point blank if Gen AI was nothing more t…