1853 - the New York Clearinghouse is founded
Panic of 1857 - a severe financial crisis that began on August 24, 1857, with the collapse of the NY branch of the Ohio Life Insurance and Trust Company. It is widely recognized as the world's first truly global economic crisis, amplified by interconnected markets and the telegraph.
Great timeline of US capital markets by @SIFMA for their 20th anniversary timeline.sifma.org/
U.S. Attorney’s Office for the District of Puerto Rico Announces Creation of the Interagency Fraud Enforcement Task Force #muniland
justice.gov/usao-pr/pr/us-at…
"At some point the GPUs will be fully depreciated, but we're probably still going to be using them for a while, because the value of even an H100 at this point is higher than it was last year... compute continues being constrained."
In other words, the CEO of a company running one of the largest fleets of Nvidia chips in the world said on camera that a used H100 has gone up in value over the past year, and he said it almost as an aside while making a separate point about why Meta owns its own data centers."
[This is the bull case for AI capex.]
Millions Watched Zuckerberg Sip A Guinness. Nobody Heard What He Said Next. zerohedge.com/ai/millions-wa…
Cyber incident halts Bankruptcy Court noticing nationwide ~~
The nationwide system for providing notice to creditors in bankruptcy cases has been disrupted by a cybersecurity incident, and it is not currently known when the outage will end.
via @Law360
The greatest question in credit markets now ~~ did the hyperscalers issue too much debt to service or has the ginormous flood of new AI paper caused the selloff?
The FT is featuring a Gartner report that alleges about half the new paper wont be able to make a profit (&/or conceivably service debt).
"Gartner said AI data centre owners would need to generate revenues of $8.5 trillion by the end of 2030 to cover their capital and financing costs and generate healthy returns on those investments. But it forecast that consumer and corporate spending on AI services that would flow to data centre providers would reach “no more than $3.6 trillion”.
via FT: giftarticle.ft.com/giftartic…
Gartner's doomsday prediction: gartner.com/en/newsroom/pres…
If anyone has a copy of the Gartner report I'd love to see it. Also what are the trading desks saying about the Gartner report?
Cate Long retweeted
The greatest advantage of researching via an LLM vs. talking to an expert is that I am not embarrassed to ask stupid questions or request definitions of most basic concepts. As a result, I am learning things no professor has been able to impart over the last four decades.
"Reviewing complex documents like long scientific manuscripts or complex legal agreements requires specialized expertise and advanced subject knowledge. This imbalance creates a validation bottleneck, where information is being generated faster than it can be rigorously reviewed.
Today, [@GoogleResearch is] excited to announce the public release of Deep Review, an agentic AI system engineered to provide rigorous feedback and technical verification on complex documents. Initially designed for computer science academic paper analysis, the system’s capabilities have expanded to review documents across many domains, such as legal and finance."
Today @GoogleResearch is launching Deep Review — an agentic system designed to stress-test manuscripts, design docs, and complex proposals before submission or publication. After pilot partnerships analyzing over 15,000 research papers, we’re making Deep Review globally accessible to help researchers, engineers, and professionals bring structured critique to their daily workflows.
Cate Long retweeted
NB from SCOTUS: courts don’t get to hijack agency procedural discretion under the rubric of remedies.
Explainer: Venezuela's complex and contested debt puzzle
Most analysts estimated debts of $150 billion to $200 billion, but the Financial Times reported Venezuela was set to unveil a larger-than-expected debt pile of $240 billion.
reuters.com/world/americas/v…
Allegedly Puerto Rico mayors are taxing federally funded recovery projects & using the funds "to pay for local festivals, events and other nonessential expenses."
Billions of dollars of "oversight" & we're back to pre-bankruptcy practices #muniland.
Yesterday, @FoF_Institute, @NTU and @Protectaxpayers asked @FEMA_Cam to formally determine Puerto Rico’s construction taxes on FEMA projects unallowable federal costs.
This determination doesn’t just comply with federal law but also advances @POTUS and @JDVance’s goal of eliminating the abuse of taxpayer dollars.
Read the full letter here: ff.org/taxpayer-groups-ask-f…
@cate_long @JoseADelgadoEND @gruizkuilan
"The proposed [federal permitting] changes will have significant impacts on county projects such as housing, broadband, transportation infrastructure and waterworks, as well as benefits for public lands counties." Great explainer #muniland.
Counties interact with federal permitting statutes constantly, cooperating with agencies on projects that use federal funds or touch federal lands.
If enacted, a new bill would significantly impact county projects, from housing to broadband and more.
Learn more: bit.ly/47exQcN
The 1st Circuit orders National (generally Prepa bondholders) to show cause why their appeal of the Title 3 lift stay order shouldnt be dismissed for lack of jurisdiction (ie denial of lift stay is not a final order) #muniland.
drive.google.com/file/d/1gAN…
Cate Long retweeted
David Sacks Calls Out the “Rotating Hoaxes” Fueling Superintelligence Fears
“Let's just get back to first principles here.
What is the problem that we're trying to solve? The affordability of goods like housing and education and healthcare.
How do we bring those prices down? Through abundance.
What creates abundance? Technology in general, and specifically superintelligence will be the driver over the next decade.
Now, what is the most hated thing in society right now? Superintelligence.
If you judge it by its fruits as opposed to a bunch of fake narratives, then I think that people would be in favor of this thing.
What does superintelligence create?
First of all, people's 401ks are going up. It’s a 3% tailwind to GDP. A million new jobs created, according to The Economist, already. Productivity goes up, which means that wages and living standards go up.
This is a driver right now of nothing but positive economic trends.
But what do we hear about?
‘AI's going to put everyone out of work.’ Total fake narrative. That was last year's hoax. Data centers using up everyone's water. Now there's a new hoax about human extinction.
So we have a series of, I call them rotating hoaxes, where every six months there's a new one to try and convince us to sabotage the thing that's going to solve so many of our problems, especially the ones around affordability.”
You're making up facts again @daskeel. Here is the letter from the House Chairman concering the pre-statute Prepa deal. I'm not sure why you think some Treasury officials have precedence over a lawmaker. In America administration officials don't write law #muniland
drive.google.com/file/d/0BwU…
Congress explicitly grandfathered a 2015 deal btw the Puerto Rico govt & Prepa bondholders into Promesa (2016). Oddly David Skeel & several of his fellow board members didn't believe they were bound by law. Instead they've litigated for 9 years against bondholders #muniland.
The bondholders are the ones who have been dragging out the PREPA bankruptcy by raising every conceivable litigation issue they can dream up.
Simple solution would be for the president to push the bondholders to take the offer @FOMB put on the table and end the bankruptcy.
Is there financial motivation for @proskauer to extend litigation in the Puerto Rico bankruptcy for as long as possible? Specifically the electric utility which has been in bk over 9 years #muniland cc @LauraLoomer @DataRepublican.
A bondholder observer ran the math and it's shocking:
"taking your Proskauer 2024 invoice that you posted, Marty [Proskauer's lead attorney on the case] billed $594k just for himself for those 4 months. Multiply it by 3 for the full year and you get $1.78 million for a full year. Assuming he worked 5 days a week and took the three federal holidays (Juneteenth, Fourth of July and Labor Day) off, that means he worked 7.25 hours per day on PREPA. I do wonder if he was billing any other clients during that time.
If PREPA billing went away, Proskauer would have to find more work for the 73 professionals they used for those four months. Total billing was close to $6 million for those four months, which means about $18 million for a full years work.
Makes you wonder how strong the incentive for Marty and Proskauer to solve the PREPA case?"
+++
Recall that Congress grandfathered a consensual deal between the PR govt & Prepa bondholders into Promesa which makes the +$560 million spent on advisors and attorneys even more outrageous.
Cate Long retweeted
A retired NASA engineer who had worked on the Space Shuttle program for 25 years was hired by SpaceX at age 62. He described the first week as the most disorienting experience of his professional life.
At NASA, a design change required 3 meetings, 2 committees, a review board, and 6 to 18 months of documentation. At SpaceX, his new supervisor said "if it works, build it. If it doesn't, change it by Friday."
He sat at his desk after the first day and called his wife. He told her he felt like a man who had been swimming with ankle weights for 25 years and someone just cut them off. He could move. He could decide. He could build something in the morning and test it in the afternoon. The constraint that he had accepted as the nature of aerospace engineering turned out to be the nature of bureaucracy.
Within 6 months he had contributed to more design iterations than he had completed in his last 5 years at NASA. Not because he was working harder. Because the time between having an idea and testing the idea collapsed from months to hours. The same brain. The same knowledge. A different operating system.
He described a specific moment where he proposed a modification to a Raptor engine component. At NASA, the proposal would have entered a queue. At SpaceX, the modification was machined by the end of the day and tested by the following morning. He watched his idea become a physical object in 18 hours. At NASA, 18 hours would not have been enough to schedule the first meeting to discuss whether to schedule a meeting.
He told an interviewer: "I didn't get smarter when I went to SpaceX. I got faster. The intelligence was always there. The system was in the way."
The difference between SpaceX and NASA is not talent. NASA has extraordinary talent. The difference is the time between a thought and a test. SpaceX compresses it. NASA elongates it. The same engineer produces 10x more at SpaceX than at NASA because the bottleneck was never the engineer. It was the meetings about the meetings about the work.
Oklahoma Supreme Court launches 3-year court AI recording pilot.
The program aims to address court reporter shortages by using artificial intelligence to record hearings and produce preliminary transcripts while preserving certified court reporters’ role in the official court record.
newson6.com/tulsa-oklahoma-n…
If the dismissed Puerto Rico OBoard members are called to the White House to justify their handling of the electric utility bankruptcy the president's committee should inquire what is going on with @proskauer's billings #muniland.
Proskauer hasnt filed a request for compensation for Prepa since Aug 18, 2025 and that application was for June 1, 2024 - Sept 30, 2024. So the OBoard's main attorneys are 2 years behind on their billing (which seems especially odd for a law firm).
Proskauer's last request for comp basically coincides with when President Trump dismissed 6 members of the OBoard on Aug 5, 2025.
Are the OBoard/Proskauer trying to suppress information related to their gross expenditure on attorneys and advisors?
Recall that the Congressional Budget Office estimated that the entire PR bankruptcy (Commonwealth, Prepa and multiple other public corporations) would cost $370 million and they've already spent +$560 million on the electric utility's attorney & advisors alone.
It obviously would be a huge financial hit for @proskauer if they had to stop litigating PR.
Proskauer-20th-compensation-application-Prepa-summary-sheet-aug-18-2025:
drive.google.com/file/d/1Um6…
President Trump has set up a committee to investigate mortgage-fraud allegations against Fed governor Lisa Cook that will hold a Nov 5 White House hearing to consider firing her, according to a notice posted on the WH’s website. Next up Puerto Rico OBoard WH hearing? #muniland
President Trump has formed a committee to evaluate the mortgage-fraud allegations made against Fed governor Lisa Cook on.wsj.com/4e0cvaC
























