- SpaceX and CoreWeave Inc. were among the biggest casualties in a broad-based credit slump due to renewed fears of tighter regulation on the artificial intelligence industry.
- The yields on one of CoreWeave’s bonds soared to a record high of more than 17%, while the cost of insuring SpaceX’s debt against default also rose to its highest level ever.
- Market watchers warned that a Democratic rout could strengthen the party’s ability to scrutinize Elon Musk’s conduct and impede an anticipated tie-up between Space X and Tesla Inc.
The bubble has been pumped up so high and for so long that we’re not even near the point were those who jumped into it in January are actually losing money, much less those who jumped into it 2 or more years ago started fearing that they’ll lose money in their “investment”.
You do see the professionals changing their posture (especially in the Money Markets), but the rout hasn’t started yet, IMHO.
Make laws that banks can’t lend against imaginary wealth. Let billionares pay for their own shit.
Just make borrowing against it “realise” it for tax purposes. You want to borrow against $100M in stock. The stock has now been realised and taxes are owed on it. It would close the massive loophole that big business and billionaires abuse to avoid paying their share.
SpaceX going bust would be so awesome!!
im a bit conflicted. hate the sattelites but like the reusable rockets. I mean the tech is already out there so im sure someone would take up the slack. unfortunately there are likely to be half a dozen different sattelite internet swarms eventually regardless.
Well they could go bust and then the government could atwp in and nationalize them for penneies on the dollar.
Yes, let’s blame all of that on the elections… They had shit bond yields before that already, it just got worse.
“Companies have been reckless doing whatever the hell they wanted but now with the smallest amount of scrutiny everyone panics”
Tells me you don’t have a strong business then.
If there’s one thing the response to the 2008 Crash taught the people which have most of the money is that governments can and will have the general population endure massive pain in order to save the value of the Assets of the billionaires (and thus their wealth) and people won’t do jack shit about it beyond a few demonstrations where they peacefully complain and still get assaulted by some of the most violent and sadistic pigs around.
So I expect this is entirelly about a change in the expectations of how likely public money is going to be used to save AI “investors” and AI companies (all that paid with Austerity for the riff-raff) from all the reckless done by those companies and not at all about those with all the money suddenly discovering that the industry was reckless - I’m pretty sure they were well aware of that already.
Smallest amount of scrutiny that hasn’t even happened yet and isn’t even guaranteed if Jeffries and Schumer get in the way
Yeah, this is the reaction to just a tiny change in the investor expectations on the industry being under scrutiny and not just unconditionally saved with taxpayer’s money like in the 2008 Crash around (when, by the way, there was a Democrat administration in power which unconditionally save the entire industry that had fucked things up massivelly, thus protecting the value of the Assets of the ultra-rich, hence the huge growth in inequality in the following decade).
I’m sure Musk will ask for a bailout.
And probably get it.
He will get it. Space X is now the only domestic source of volume orbit launch capabilities. It’s a “national security issue” if it goes under. which is probably why Musk has been tying all his other failing garbage like XAI into SpaceX.
Any bailout should come with two big conditions.
1 - spin it back off into its own company - rockets one company, telecom one company, everything else can go fuck off.
2 - elon has to sell off all stakes in the rocket company.
Nationalize it.
It makes sense. The Americans’ space program started with Nazi scientists, so now they can continue with a Nazi businessman.
How about the federal government take itbover instead. National security and all.
