David Sandahl

@dsandahl.bsky.social

Civically-engaged. Federal Budget (OMB and SBC) background, followed by 40 years of management consulting. Now retired, focused on building a more perfect union.

"Circular financing" is when they have contracts with one another but not paying customers or markets. They're betting hundreds of billions on something that may never exist, while starving investments in real world capital and equipment. www.trentonian.com/2026/07/27/n...

Nvidia’s $750 billion deals revive fear of AI circular financing

Such transactions have left many AI companies increasingly intertwined, leaving the industry exposed to shocks.

trentonian.com

Five months ago, on Feb. 26, 2026, the Strait of Hormuz was and open international waterway, as it had been for decades. Five months later, thanks to Trump's war, the Strait is closed, we've lost 18 service members and spent ~$100b, and the U.S. is neither as liked nor as trusted nor as feared.

🤔 When have I heard this before? "In just a few years, fund finance has roared to life as Wall Street’s most active laboratory — bundling up assets, slicing them into tranches of varying size and risk" (Bloomberg BW) Oh right, that 2008 Great Recession thing. They never learn (or just don't care)

80% Shares of the top six US banks — JPMorgan, BofA, Citi, Wells Fargo, Goldman Sachs and Morgan Stanley — are up an average of almost 80% since the 2024 election. The group has over $100 billion in profits this year. Bloomberg Business Week