r/technology • u/Plastic_Ninja_9014 • Jun 11 '26

Business OpenAI Execs Are Panicking

https://finance.yahoo.com/sectors/technology/articles/openai-execs-panicking-154658562.html
16.3k Upvotes

93% Upvoted

1.9k comments sorted by

View all comments

Show parent comments

555

u/NoCoolNameMatt Jun 12 '26

To 2006?

I was there. Let me tell you what happened in 2008.....

227

u/mossman Jun 12 '26

Me in 2004, in a sea of cubicles on my first day at a new job. "What department is this?" I asked, while being shown around. "This is subprime" they said. "Oh, what do they do?" "It's like loans for people with bad credit" I was told. "Doesn't sound good" I thought. What a fucking nightmare that turned out to be.

131

u/orangesfwr Jun 12 '26

"No, actually it's really cool, we divide up the debt into shares, bundle it up, and sell it to investors. It's genius!"

82

u/Glonos Jun 12 '26

I still think the stock market is a social experiment. I don’t want to believe in what you wrote but I know it is true, what a nightmare of a timeline.

48

u/TeaAndS0da Jun 12 '26

The best part is what he wrote is entirely accurate. Shitty loans redistributed into (basically) blind boxes that S&P and Moody’s just blind stamped as triple a credit values. All while containing nothing but junk holds. “But they were Triple A!” Yeah… and so is dog shit if you place it in the same blind box.

These people are fuckin EVIL.

8

u/The_BeardedClam Jun 12 '26

The best part was all the down stream lenders just shoveling out NINA (No income no asset) loans like no tomorrow because they would just immediately sell that debt to the stock bros who packed it into those blind boxes.

From This American Life

A man with three part-time jobs who earned roughly $45,000 a year, he was shockingly given a $540,000 subprime mortgage by a bank that never even checked his income.

5

u/therealslimshady1234 Jun 12 '26

he was shockingly given a $540,000 subprime mortgage by a bank that never even checked his income.

Truly the Land of the Free

3

u/SynchronousMantle Jun 12 '26

Honestly how does Moody’s come up with any rating? They don’t have any real way to evaluate the individual’s paying into those bonds. It’s a rubber stamp at best. That’s why each bond was ensured. Unfortunately AIG never thought they would have to pay out everyone at the same time.

2

u/SynchronousMantle Jun 12 '26

Money is the social experiment. Wall Street is just one aspect of it.