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Hello and welcome back to Better Offline.

I'm your host at Zittron.

Better Offline. This is the last part of our four-part series about how the financial system and the financial markets are the last victims of the inshittification process.

Over the past four episodes and a 20,000 or so word newsletter, which this series is based on, I've explained how.

And in this final episode, I'm going to explain how all this is going to fall apart and make it clear where I'm so fucking alarmed.

Now, let's get back to those data centers.

We've already got some signs of concern within the banking world around them. and I'm kind of worried, and so are they about their exposure.

In November, the FT reported the Deutsche Bank, which backed Cor Weave multiple times and several data centers,

was exploring ways to hedge its exposure to the AI data centers after extending billions of dollars in debt,

including shorting a basket of

AI-related stocks or buying default protection on some of its debt using synthetic risk transfers,

which are when a bank sells the full or partial credit risk of a loan or loans to another bank

while keeping the loans on their book, paying a monthly fee to investors. This is a simplification.

Please don't be mad at me.

In December, Forging reported the Morgan Stanley, three times with Corweave, IPI partners,

Hyperion, SoftBanks, Bridge Loan, was also considering synthetic risk transfers on loans to businesses

involved in AI infrastructure. Wonder what those were for? Now, back in April,

SMBC sold synthetic risk transfers. Back in April, SMBC sold synthetic risk transfers tied to

private debt BDCs. And while this predates the larger data center deals done by Blue Al,

...