this post was submitted on 30 Oct 2026
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[–] shalafi@lemmy.world 21 points 1 day ago (3 children)

I can't see them getting bailed out. That would be political suicide for either party. AI companies aren't creating jobs, they manufacture nothing (like autos) and they're not our financial backbone (like banks).

[–] countvon@lemmy.world 37 points 23 hours ago (4 children)

They tech companies themselves likely won't get a bailout, but don't rule out the Fed warming up the ol' money printer. All the borrowing for data centers, where do you think they're borrowing from. Banks, insurance companies, bond investors and private credit funds. Those first two are the key. If a too-big-to-fail bank or insurance company gets jammed up by their own bad loans to hyperscalers, you best believe they're going to the Fed, hat in hand, asking for another bowl of that sweet, sweet quantitative easing.

[–] shalafi@lemmy.world 16 points 23 hours ago (1 children)

Well crud. I hadn't seen that angle.

[–] abadidonque@feddit.uk 8 points 22 hours ago (2 children)

Yeah, my understanding is that once bankers have bet more of other people's pensions and life-savings than they can cover if they lose the bet, they are in line for a bailout.

In effect, the more catastrophic your bet is, the less personal responsibility you have to take for it.

One of the many hypocrisies and perverse incentives of capitalism.

[–] shalafi@lemmy.world 8 points 22 hours ago (1 children)

That's anything but capitalism. Capitalism says if you fail you die. If that takes other people down, so be it. But bailouts were never supposed to be a thing.

[–] abadidonque@feddit.uk 2 points 7 hours ago

Sounds great! Where do I find a capitalism like that?!

[–] eggpl4nt@lemmy.world 5 points 21 hours ago (2 children)

In effect, the more catastrophic your bet is, the less personal responsibility you have to take for it.

"If you owe the bank $100, that's your problem. If you owe the bank $100 million, that's the bank's problem."

[–] abadidonque@feddit.uk 2 points 7 hours ago

And seemingly

"If the bank owes $100 billion, thats the taxpayers problem"

[–] jj4211@lemmy.world 6 points 19 hours ago

Needs to add if you owe the bank $1 Billion, then that's the governments problem.

[–] jj4211@lemmy.world 6 points 22 hours ago

An entire financial industry ruined by bad loans to a single market you say... Wait, I think I've seen this one....

[–] cantstopthesignal@sh.itjust.works 4 points 23 hours ago (1 children)

Also there could be contagion to the big banks and institutional investors (think pension funds) from the bond sales and the construction loans for the data centers.

[–] jj4211@lemmy.world 1 points 19 hours ago

cough 2007 cough

[–] Rhaedas@fedia.io 2 points 23 hours ago

What about all the major companies who have scraped their workforce to replace it with AI, so sure that it would pay off. They also can't afford for AI to go under, so they'll add to the "please bail us out" for the good of the economy.

[–] explodicle@sh.itjust.works 5 points 18 hours ago (1 children)

Would it still be political suicide if it was bipartisan? They'll make up a million stupid reasons, unleash their army of bots to promote it, and try the same thing Facebook did in 2016.

[–] Ensign_Crab@lemmy.world 2 points 18 hours ago* (last edited 18 hours ago)

We'll be told that democrats and republicans both support bailouts, but that we have to support democrats because republicans worse. On a dwindling number of policies democrats never fight for.

[–] jj4211@lemmy.world 2 points 22 hours ago

They already have had trump rumbling that they are key to "national security". So clearly getting ready to bail them out.