(Expanded from April 9, 2025)
"We think they are days from failure. They think it is a temporary problem. This disconnect is dangerous."
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On Shine Together, Nas frames venture capital not as finance, but as recognition: “Angel investing in the angels that the world forgot / Tu...
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U.S. yields start the day lower, with the 2Y down 4bps back at 5% and the 10Y down 6bps at 4.26%, both back to where they were pre-SVB (reme...
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We spend endless time debating the Fed’s neutral rate. Much less time asking whether the government can afford it. Enter Fiscal r-star : t...
Edward Quince's Wisdom Bites: Low Ego
Nas closes his masterclass with a lesson on temperament: “The liquidity is high, but the ego is low / Light years ahead of where the paper u...
what does Edward Quince think of RPOs and circularity in the AI/highly levered data center sector?
ReplyDeleteRPO's were innovative in the NFL a few years ago, less so now, but still can work well with the right personnel grouping....sorry, you wanted Remaining Performance Obligations...and in the long-run isn't the entire economy a circular flow model (at least accounting wise)? Edward is smart enough (barely) not to venture outside his circle of competence, which does not include the intracies of data center deals...but he thinks the question behind the question boils down to a question of whether or not the AI/data center ecosystem is generating claims on future income faster than it's ability to generate that income...it's timing and whether the spend is "productive"...and who absorbs losses if it all fails to deliver?
ReplyDeleteEdward goes back to thinking about General Equilibrium models, which assumptions fail and why, opens up something by Keynes, who stabilizes the broken circle? Turns to Fisher for debt deflation, wonders what Minsky would think, does the circle just depend on asset prices and not income anymore? There's no precision in any of this, just uncertainty...where's the humility?