No. of Recommendations: 6
Tangential to Berkshire (I hope), but reading some of these articles about new derivatives being created to back the demand for "hyperscaler" build-out caused a flashback to the 2007-2008 GFC and Warren's view of derivatives as instruments of financial mass destruction:
"As big tech companies raise hundreds of billions of dollars to fund artificial intelligence investments, Wall Street banks are increasingly finding they have to trade more credit derivatives to keep doing business with the hyperscalers." --
finance.yahoo.com - Hyperscaler debt flood brings derivativesThe second article also speaks to what sounds like securitization of these instruments, another feature of the GFC era:
economictimes.indiatimes.com - AI bubble fears are creating new derivatives 