hidflect retweeted
🚨 SOFTBANK'S DEBT CRISIS IS GROWING.
It is now down -25% in just the last 7 trading sessions.
The biggest concern is its exposure to AI.
As of June 2026, it held $164 Billion in debt, much of it used to finance its AI investments. The interest costs for this is already at $2 Billion, up 95% from Q1.
In September, it raised another $11 Billion at interest rates as high as 9.75%, adding $1 Billion in annual interest.
Investors are now panicking over whether these massive costs will ever translate into actual profits.
SoftBank’s 5-year default insurance (CDS) shot up by 24 basis points to 424 bps.
This makes it a similar story to what happened to Oracle’s 5Y CDS (288 bps) and CoreWeave’s CDS (1,100bps).
Higher US inflation and Fed rate hike fears are adding even more pressure.
Any corrections in AI valuations could hurt its investments and make it difficult to repay such large debt.
hidflect retweeted
I’m old enough to remember when the boys at Morgan’s were telling us this one could be going to $45 🥴
$NXT.AX
hidflect retweeted
The mrkt is connecting the dots on NextDC’s debt binge & the equity looks very fragile. Leverage is exploding toward 15x Debt/EBITDA in FY27 as the company pours >A$5.5B into capex while EBITDA limps to A$400M. Increasing debt into a higher-rate world leaves the balance sheet stretched thin, refinancing risk elevated, & the equity hanging by a thread... $NXT.AX #AI
hidflect retweeted
🇫🇷 Around one million people have taken to the streets across France to protest rising prices
hidflect retweeted
This is who I blame @federalreserve
xitter.cf/RudyHavenstein/status/…
In the previous 5 months, the Federal Reserve had monetized over $1 TRILLION of MBS.
They owned $0 in 2008. @federalreserve
All the ASX corporations are salami slicing themselves to death. There's zero growth prospects...
BHP to cut 300 Pilbara iron ore jobs as unions impose sellout deals wsws.org/en/articles/2026/10…
hidflect retweeted
Billions of pounds lost on a single project because we can’t connect it to the grid for half a decade and have destroyed our capacity to generate reliable electricity.
Exclusive: Microsoft cancels UK data centre deal with Nscale. Comes just as Nscale hopes to pull off a $35 billion IPO telegraph.co.uk/business/202…
hidflect retweeted
This is not 1980... Don't sell your gold.
Back then, US debt to GDP was ~30%, which enabled Volcker to hike rates aggressively to kill inflation.
But inflation wasn't the only thing he killed... He also plunged the US into a recession.
Today, with debt to GDP above 100% and deficits running at 6% of GDP, the US can afford neither a recession nor sustained higher rates.
In a recession, deficits blow out to 7-10% of GDP... at a time when foreign investors are increasingly unwilling to fund endless US deficits...
Forcing the Fed to let the money printer go wild.
Warsh can talk tough like Volcker, but the fiscal situation will force him to inflate the debt away...
So that a future Volcker can eventually hike rates to kill inflation.
Until that happens, we don't own enough gold for what's coming.
