posted in Technology
Banks are now trying to offload the AI data center debt they just underwrote
startupfortune.com/banks-are-now-trying-to-offload-the-ai-data-center-debt-they-just-underwrote/
Replying to @HaraldvonBlauzahn@feddit.org
I work in commercial real estate. This is a normal common practice in commercial real estate. They honestly do this for pretty much every type of real estate and for as many as they can.
They securitize it in portfolios and sell off interest in those payments to others. They intentionally mix and match properties in portfolios so if one fails, there is less risk to the whole thing.
I’ve seen fast food restaurants, malls, airports, billboards, cell towers, hollywood studios, aerospace firms, law firms, hotels, apartments, everything. And yes, also data centers
Replying to @W3dd1e@lemmy.zip
That sounds like 2008 crisis waiting to happen again and again and again
Replying to @trolololol@lemmy.world
which were all caused a republican, starting the cycle, of re-electing the same gop and Dinos.
Replying to @trolololol@lemmy.world
Well, Oracle will implode and Ellison will be broke. He and his idiot son will probably have to sell off all their media holdings. So, a small silver lining. You cant eat it, but …
Replying to @kreskin@lemmy.world
probably, I kinda hope Oracle doesn’t fall too much because I like using their free tier as an overcomplicated vpn because my isp has some fucked up network config (maybe CGNAT?)
Replying to @trolololol@lemmy.world
Actually, I tell people to watch the Big Short because they explain the securitization process really well.
But hopefully rating agencies aren’t lying about the quality of loans and intentionally underwriting bad debt like they did in 2008 but I don’t originate the loans so idk.