Friday, February 6, 2026

Climate Alarmists Are Often Wrong But Never in Doubt

   We've spoken so many time about global warming that there should be nothing left to say. Thankfully a cold winter is here to remind us of 30 years non-stop of alarmist predictions failing to materialize in the real world as listed below.

  Polar ice should be an old memory by now but as I flew over the Pole last year thanks to Finn-air avoiding Russia, I couldn't help but notice that it was still there.

  Rising seas should also have swallowed quite a few islands in the Pacific although most seems to be floating quite nicely, thanks to the "not dying" coral reefs around. 

  Warner summers? There is indeed a slow-motion warming which has been going on for the last two hundred years and may keep going for another decade or two. So nothing new on this front.   

  In reality, we still know very little about the weather. Our models are becoming more accurate but it doesn't mean much with complex systems which are still poorly understood. Change a variable slightly and the outcome can be very different as in a Mandelbrot set. Which comes very handy when you try to replicate a past trend. Eventually, you can make anything fit.... and it still doesn't tell you if you have a working model or not.  

  Does this mean we should do nothing at all? Most certainly not although less fanaticism would help focus better on the right priorities such as not destroying tropical forest, not over-pumping aquifers, not polluting land and managing better energy knowing that every single energy source is a complex balance between positive and negative aspects. These are the discussions we should be having, not absurd obsessions about CO2 and unfortunately we do not.  

Authored by Gary Abernathy via The Empowerment Alliance,

One of the most annoying things about climate doomsayers is the certainty with which they make their dire predictions, while simultaneously making excuses for all their past prognostications that failed to materialize. Let’s revisit a few.

In the early to mid-1970s, several magazine articles and a number of scientists predicted that cooling trends could usher in a new “mini-ice age” beginning within a few short years. Didn’t happen. In fact, new crystal balls went from cold to hot.

A June 1989 Associated Press story quoted “a senior U.N. environmental official” who claimed that “entire nations could be wiped off the face of the Earth by rising sea levels if the global warming trend is not reversed by the year 2000.

Noel Brown, director of the New York office of the U.N. Environment Program, insisted that “governments have a 10-year window of opportunity to solve the greenhouse effect before it goes beyond human control.” Without action “ocean levels will rise by up to three feet, enough to cover the Maldives and other flat island nations.”

At last report, the Maldives continue to thrive – thanks largely to growing tourism! According to CBS News, in 2009 former Vice President Al Gore (always good for a chuckle) “told a U.N. climate conference that new data suggests the Arctic polar ice cap may disappear in the summertime as soon as five to seven years from now,” meaning 2016 at the latest. Didn’t happen.

In 2000, the UK Independent ran an article quoting a scientist who suggested that within a decade, thanks to global warming, British children “won’t know what snow is.” Don’t tell that to the British youngsters and others who experienced the severe winters of 2010, 2013, 2018, etc.

Enough? Let’s do a couple more.

There were numerous predictions in the early 2000s that all glaciers in Glacier National Park would disappear by 2020 or, if we were lucky, by 2030.

Later predictions delayed the glaciers’ inevitable demise to 2050,” according to a December 2025 article in the Daily Inter Lake. “Now, researchers say there is reason to believe some of the park’s perennial ice formations will persist into the 2100s.” Glaciers are famously stubborn. Several news stories over the years have quoted scientists and climate alarmists predicting that New York City would disappear under water thanks to flooding due to climate change.

For instance, in 2011, on the heels of Hurricane Irene, The Guardian produced the headline, “Major storms could submerge New York City in next decade,” and a subhead, “Sea-level rise due to climate change could cripple the city in Irene-like storm scenarios, new climate report claims.”

Instead, the only tsunami facing New York City is the flood of debt coming under socialist Mayor Zohran Mamdani.

Despite a track record that should discourage even the most ardent true believer, the predictions keep flying, fast and furious, most centered these days around slightly rising temperatures that will allegedly increase rainfall, create more wicked storms, and lead to drought, flood (they always cover both possibilities) or other catastrophes.

“Climate change is real, it’s happening and unless we do something about it soon, the consequences will be severe,” according to Martin Krause, director of the United Nations Environment Programme’s Climate Change Division. Second verse, same as the first.

While most believers in manmade climate change are part of the “Let’s Come Up With the Worst Case Scenario and Hope it Scares Everyone Into Action” school of alarmism, it’s refreshing to occasionally come across someone with a more reasonable approach.

Fitting that bill might be Noah Kaufman, former senior economist at the Council of Economic Advisers during the Biden administration, currently a senior research scholar at Columbia University’s Center on Global Energy Policy and a co-director of the Resilient Energy Economies Initiative.

In a “let’s all calm down a minute” article appearing earlier this month in The Atlantic, Kaufman – while making it clear that he personally is firmly aboard the manmade climate change bandwagon – laments the specific time-and-date panic predictions that have helped lose respect and credibility for his cause.

“Few economists embrace these all-or-nothing views on climate policy,” Kaufman writes. Kaufman points out that “quantitative estimates of aggregated global damages over centuries lie far beyond our analytical capabilities. Small changes in assumptions … can yield results that appear tojustify virtually any policy response.”

At the end of the day, “these models can display a pessimistic worldview in which climate damages accelerate to catastrophic levels, or a more optimistic one in which human progress keeps damages relatively modest. They offer little help in determining which of these futures is coming.”

Kaufman concludes by acknowledging that “the full effects of climate change are unknowable, and a more constructive public discussion about climate policy will require getting more comfortable with that.”

I recommend Kaufman’s article. Even though I will likely remain among those who agree that the climate routinely changes but remain skeptical about the extent of mankind’s impact, I don’t mind discussing it and listening to different viewpoints. Such conversation is much more palatable with someone who is not exhibiting a holier-than-thou attitude or demeaning the intelligence of anyone who disagrees.

More manmade climate change believers who take a respectful, calmer and non-accusatoryapproach to the naysayers could go a long way in lowering the temperature – and don’t we all agree on that objective?

"Electricity Market Is F*cked": Finland Wind Turbine Blades Freeze, Curbing Green Power Output

   It sounds like a joke, but of course it is not. This is what the European green ideology is built upon: Fanaticism and technical incompetence.  

"Electricity Market Is F**ked": Finland Wind Turbine Blades Freeze, Curbing Green Power Output

Finland has prided itself as a global leader in decarbonization, boasting the second-highest share of renewables in final energy consumption across the EU. But the green utopia narrative has cracked under the strain of a brutal winter, as cold weather has brought wind power generation to a near standstill.

Most of the country's wind capacity is concentrated in western Finland, where temperatures are well below freezing, and these adverse weather conditions have led to dangerous ice buildup on turbine blades. According to Bloomberg, this forced the grid operator Fingrid Oyj to curtail wind power output.

"There are low fog clouds in Finland's main wind power production area, roughly at the height of turbine blades, which are causing new ice to form," Pia Isolähteenmäki, an adviser at industry consultant Kjeller Vindteknikk Oy, told the outlet.

Much of Finland's wind fleet lacks blade-heating systems for extreme cold weather. How is that even possible, considering it's a Nordic country? Even the thinnest ice buildup risks equipment damage and has led to shutdowns this week.

Bloomberg data show that Finnish wind output is expected to remain very low for the next two weeks. Meteorologists at MetDesk forecast that Nordic wind generation will remain as much as 20% below normal through at least the midpoint of the month.

The result of the green utopia pushed by Europe's climate alarmists, not based in reality whatsoever, is soaring power prices that are crushing working poor households.

"Electricity prices in Finland rise to the highest level of the winter on Monday, driven by severe cold, weak wind conditions and rising weekday demand," local outlet Helsinki Times wrote on Sunday.

Finnish folks on X are questioning the government's questionable decarbonization push:

In the US, a historic cold snap in the eastern half of the country led to increased fossil-fuel power generation to prevent power grid collapse.

Across the West, years of grid mismanagement by climate alarmist policymakers have transformed what were once reliable grids into fragile messes where working poor households bear the brunt of some of the highest electricity costs in the world.

It is time to get back to basics and expand natural gas generators and nuclear power, the only proven large-scale source of clean and reliable electricity. And it is also time to hold accountable the climate alarmists whose policy decisions pushed power grids toward the edge of collapse while promising a green utopia that was never going to arrive. And one can only wonder whether the move to push power grids to the brink of collapse was intentional...

Vaccine mRNA, Plasmid DNA, and Spike Protein Can Persist in Humans More Than 3.5 Years After COVID-19 Vaccination

  It is amazing how quickly people forget. Although their immune system may not so easily. As many immunologists warned us about the mRNA vaccine, it was extraordinarily unlikely that the RNA would stay where it was injected and would degrade quickly as we were told and reason why there was nothing whatsoever to worry about. But what if it didn't? Many people may have to live with the consequences of this question for the rest of their lives. 

Via: Focal Points:

For years, the public was told that mRNA vaccine materials would degrade within days to weeks — rapidly broken down, biologically transient, and incapable of long-term persistence. That assumption shaped regulatory assurances, public messaging, and safety expectations worldwide. Billions across the globe received these injections based on the claim that the genetic material would quickly disappear from the body.

Today, that narrative collapses — following a coordinated, multi-country investigative effort involving the McCullough Foundation, the INMODIA laboratory (Germany), the Municipal Hospital Dresden-Friedrichstadt (Germany), Neo7Bioscience, and collaborating independent laboratories.

The resulting paper, titled “Unprecedented Persistence of Vaccine mRNA, Plasmid DNA, Spike Protein, and Genomic Dysregulation Over 3.5 Years Post–COVID-19 mRNA Vaccination,” presents what is, to our knowledge, the most comprehensive COVID-19 vaccine injury case report to date — involving >40 emergency department visits, >200 specialist encounters across 18 medical disciplines, >100 laboratory investigations, >100 imaging studies, and serial blood and tissue sampling performed at multiple timepoints over more than 3.5 years.

The findings reveal longitudinal molecular evidence that vaccine-derived mRNA, plasmid DNA fragments, and spike protein can persist in human blood and tissue more than 3.5 years after vaccination — independently confirmed across multiple laboratories using diverse analytical methods.

Wednesday, February 4, 2026

Epstein, Western Decline, & The Moral Collapse Of The Elites

   So that's what they were really hiding! The rot does indeed go much deeper than a few pedophiles exchanging voluntary girls in a tropical paradise. Now that the Pandora box is open, it will be difficult to close it back.  

Authored by Lucas Leiroz,

January 2026 marks a rupture. It is no longer possible to treat the Epstein case as a sexual scandal involving powerful individuals. What has now come to light – documents, images, records, explicit connections – has pushed the debate to another level. This is no longer about “abuses,” “excesses,” or “individual crimes.” What has been exposed points to systematic, organized, ritualized practices. And that changes everything.

For years, the public was conditioned to accept a narrative of ambiguity. There were always doubts, always a lack of “definitive proof,” always a call for caution. That time is over. The material released leaves no room for ingenuousness. When evidence emerges of extreme violence against children, of practices that go beyond any conventional criminal category, the discussion ceases to be legal and becomes civilizational.

What is at stake is no longer who “visited the island” or who “caught a ride on Epstein’s plane.” What is at stake is the fact that networks of this kind only exist when they are backed by deep institutional protection. There is no ritual pedophilia, no human trafficking on a transnational scale, no systematic production of extreme material without political, police, judicial, and media cover. This is not conspiracy: it is the logic of power.

From this point on, the West can no longer hide behind the idea of gradual decline. It is not merely cultural degeneration or a loss of values.

It is something darker: an elite that operates outside any recognizable moral limits and yet continues to govern. People directly or indirectly involved with this world continue to decide elections, wars, economic policies, and the fate of entire societies.

Another decisive element is that we still do not know who is behind the leak. This uncertainty is central. It may be a move by Donald Trump or by sectors aligned with him, attempting to definitively destroy their internal enemies and reorganize power in the United States in a minimally positive direction. It may be the opposite: a controlled release of material intended to pressure Trump into serving the interests of the Democrats and the Deep State.

And the uncomfortable truth, impossible to ignore, is that all of this may still be part of an even deeper and more macabre plan by the Deep State – encompassing both Democrats and Republicans – to “resolve the Epstein issue” through a brutal campaign of collective desensitization, “normalizing” in public opinion the idea that the Western elite is composed of pedophiles, satanists, and cannibals.

This reinforces a critical point: the truth only came out because it stopped being useful to keep it hidden.

For decades, all of this was known behind the scenes. The silence was not the result of investigative failure, but of a high-level decision.

The press stayed silent. The agencies stayed silent. The courts stayed silent.

The system worked exactly as it was supposed to, all in order to protect itself.

Western societies now face a dilemma that cannot be resolved through elections, parliamentary commissions, or encouraging speeches. How can one continue to accept the authority of institutions that shielded this level of horror? How can respect be maintained for laws applied selectively by people who live above them? How can one speak of “Western values” after this?

The problem is that the modern West has forgotten how to react to anything that is vile and essentially evil. In Western societies, the people no longer know how to deal with absolute evil – especially when it is located at the top of society. Everything becomes procedure, everything becomes mediation, everything becomes technical language. Meanwhile, social trust evaporates.

This is no longer about left and right, liberalism and conservatism. It is about a rupture between people and elites.

Between societies that still retain some sense of limits and a ruling class that operates as if it were outside the common human species.

If there is anything positive in this moment, it is the end of naivety.

It is no longer possible to pretend that the system is “sick but recoverable.” What remained of the Western (anti-)civilizational project has been corroded from within. What comes next is still uncertain – and will be contested by all possible and necessary means.

But one thing is clear: after Epstein, nothing can continue as before. Anyone who acts as if nothing has changed either does not understand the gravity of what has come to light or is pretending not to understand.

Monday, February 2, 2026

Ed Dowd: Never Seen Risk Like This Before in My Career

  More like a sample than an actual list. 

  The real risk is not what will happen in the market but how the authorities will react. They perfectly know, as we do, that we are approaching the end game and there will therefore be no retrain whatsoever in their answer. Expect the worse.  

February 2nd, 2026

Via: USA Watchdog:

Dowd says, “This is a big call, and what is going to happen does not happen that often. We will try to call the bottom in the future, but right now, I have never seen risk like this before in my career. This has been unfolding. . .. I have not been wrong in the 2025 call. The stock market did go up 17%, but the rest of the economy imploded. Real estate started rolling over. . .. Unfortunately, because this is such a bubble because they kicked the can down the road . . . the odds of this happening fast have increased exponentially since the beginning of 2025.”

Dowd goes on to explain, “The three fundamental risks that we see for the US economy for 2026. . .. There are two internal risks and one external risk. The first risk is US housing crisis/white swan event. Immigrants came in and filled the gap. That’s now stopped. . .. Deportations are going to continue over the next year to two years, and that is going to continue to put pressure on homes. Affordability is a disaster. Incomes do not allow people to buy homes at these prices. The only way to correct this is home prices dropping 25% to 30% over the next two years. That would set us up for a recovery.”

Dowd continues, “The second risk to the US economy is a stock market bubble. The valuations are as bad as the Dot Com bubble. This is driven by the AI bubble, and we see the cracks are starting there. We expect that to pop sometime this year. The third risk is China. It is entering into the acute phase of its economic crisis. This is going to be a global contagion. It will hurt Japan and South Korea, and this will spill over to the US. . .. It will be a liquidity crisis, and that is why we are bullish on the US dollar.” (Dowd has new cutting-edge analysis on China for institutional investors. It has shocking new and never before released details about how much trouble China is really in.)

Dowd goes on to point out, “We have a lot of headwinds coming at us in 2026. . .. We think the first problems will begin in the shadow banking system, which is private equity, private credit funds and all these non-depository financial institution loans commercial banks made over the last two years. (See BlackRock story above.) All their loan growth came from that source. There was no loan growth in commercial and industrial. It was all in the shadow banking system.”

What Starlink's New Infrared Sensors Just Captured In Lower Earth Orbit — NASA Is Silent (Video - 22mn)

   Now for a real mystery in low earth orbit. It could be nothing much although most interesting stuff usually starts with nothing much. An anomaly we can't explain. Data which doesn't square. Information we do not understand. Then, suddenly, a new paradigm. 

https://www.youtube.com/watch?v=XfC91jCI1JE

Sunday, February 1, 2026

A Panicking Oracle Plans To Raise Up To $50 Billion, As Its Stock And Bonds Crater

   It is more and more looking like 2008, just 10 times bigger. 

   If you missed the update yesterday about the Silver market, here's a link.  

https://www.youtube.com/watch?v=cRR7-8-0SvQ

   What's happening right now is momentous and will have consequences.

A Panicking Oracle Plans To Raise Up To $50 Billion, As Its Stock And Bonds Crater

Just over a month ago, on Dec 17, alongside the news that Abu Dhabi was set to invest billions in OpenAI thus preventing a year-end tech rout, we said that ORCL CDS - which on that day hit the widest level since the 2008 financial crisis at 156bps - "may have gone a bit too far"...

... and sure enough, for the next month or so, Oracle CDS tightened rather notably. However, we certainly did not expect the company to just sit there and do nothing, as the market started asking questions again about where the tens of billions in committed funding would come from. After all, we were the first to lay out back in November the case why Oracle CDS should be trading much wider than it was at the time (see "Oracle Is First AI Domino To Fall After Barclays Downgrades Its Debt To Sell.")

And since nothing changed, the questions started coming in once more. 

First, it was Morgan Stanley's analysts (here for pro subs) with a major cut to their ORCL price target. The reason: "GPUaaS is a sizable revenue opportunity, but our collaborative deep dive across the equity, credit and GVAT teams suggests the buildout will push EPS below targets and drive materially higher funding needs. Equity valuation appears to reflect this, while credit still looks rich."

Source

If that wasn't bad enough, in the same report the bank's credit analysts said that they "reiterate our recommendation to buy 5Y CDS protection. Our new funding and leverage forecasts, paired with technicals, limited financing plan transparency, and our prior IG situation comp analysis, all support a move toward ~200bp, in our view. In regards to the bonds, a common question from investors this year has been whether current levels are a good entry point. We do not think this is case. We actually present even wider spread targets (~200bp for 10Y vs. ~170-175bp presented pre-Thanksgiving, ~250bp for 30Y vs. ~220bp, still using a media/ cable comp set) and formally introduce sell recommendations on the 35s and 55s."

Source

And then it went from bad to worse for Oracle just three days later, when on Jan 26 TD Cowen's Michael Elias, published a report which crushed ORCL, not only sending its stock to a new 7 month lows, but pushing its CDS wll above the Dec 17 high.

That's because according to Elias, who certainly does not mince his words when it comes to criticism of Oracle, the company is considering cutting 20,000 to 30,000 jobs and selling some of its activities as US banks pull back from financing the company’s AI data-center expansion. The job cuts would free up $8 billion to $10 billion in in much needed cash flow. Recall that according to Barclays, absent dramatic changes to its business, the company could run out of cash as soon as the end of 2026. Oracle is also weighing a sale of its health-care software unit, Cerner, which it acquired for $28.3 billion in 2022. 

Below we excerpt from Elias' note "Oracle: Ability To Procure Incremental U.S. Data Center Capacity Faces Challenges Amid Financing Struggles, Raising Questions On The Potential For Incremental U.S. RPO Growth", also available to pro subs.

In June 2025, we were the first to highlight via our channel checks Oracle's intention to procure ~5GW of data center capacity in support of OpenAI workloads, which proved accurate as Oracle in late 3Q25 leased ~5.2GW of U.S. data center capacity (which we highlighted in October) including: 1) 1.4GW in Shackleford, Texas, 2) 902MW (critical IT) in Port Washington, Wisconsin, 3) 1.0GW in Saline Township, Michigan, 4) 1.2GW in Doña Ana County, New Mexico, and 5) an incremental 672MW (critical IT) expansion in Abeline, Texas. Amidst the largest ramp in data center demand in history, there has been a material increase in the demand for frontend construction loans/project financing from private data center operators, particularly concentrated with Oracle given timing, leading to ~$58B of debt being raised for Oracle/OpenAI data center projects ($38B for Shackleford/Wisconsin and $20B for New Mexico) in a two-month period, with more behind it.

However, with Oracle to procure what our channel checks now indicate is ~3MM GPUs (and other IT gear) to support its existing OpenAI agreement, both equity and debt investors have raised questions regarding Oracle's ability to finance this buildout, as demonstrated by widening of Oracle's CDS spreads and pressure on Oracle's stock/bonds. Assuming a conservative $30MM/MW in IT fit out costs, the implied ~$156B capex requirement, coupled with separate questions on OpenAI's ability to fund its ~$1.4T in outstanding multi-year commitments, has led to multiple U.S. banks to pull back from lending to Oracle-linked data center projects. Furthermore, our channel checks indicate that multiple Oracle data center leases that were under negotiation with private operators struggled to secure financing, in turn preventing Oracle from securing the data center capacity via a lease. In cases where U.S. banks are still open to lending, our checks indicate that borrowing cost spreads for Oracle-linked data center projects have widened to Non-IG levels (i.e. now SOFR+300-450bps vs. SOFR+225-250bps in September).

As the borrowing costs for operators rise, the result has been a slowdown in +100MW U.S. Oracle data center leasing by private operators as the market digests the current Oracle financing requirements. Importantly, our channel checks indicate that banks in Asia are still willing to lend (at a slight premium relative to historical rates) to data center operators undertaking Oracle leases as these banks look to gain exposure to the AI sector, providing a path for international Oracle expansion in support of incremental RPO. However, the pullback in U.S. financing has raised questions regarding Oracle's ability continue growing its revenue (RPO) in the U.S. if it continues facing challenges securing U.S. data center capacity to support OCI customer contracts.

The punchline: amidst these surging capital requirements, which can no longer be met by US-based banks, TD's latest channel checks indicate that Oracle is now requiring 40% upfront customer deposits as it looks to mitigate the incremental capex requirement for incremental revenue (RPO) growth.

Furthermore, the channel checks indicate that Oracle is evaluating multiple paths forward to address financing questions including:

  1. a RIF of 20-30K employees which could drive ~$8-10B of incremental free cash flow,
  2. asset divestitures (potentially Cerner) which would allow Oracle to reduce its debt load,
  3. vendor financing
  4. Bring Your Own Chip (BYOC) which was highlighted as a potential on Oracle's latest earnings call

In the event of BYOC (which the TD channel checks confirm is a potential), TD questions if any existing Oracle/OpenAI contracts would need to be re-cut given the current $/GPU/hour pricing structure which includes the cost of the GPUs. In the interim, Elias writes that the near-term incremental demand needs of OpenAI have shifted to be fulfilled by Microsoft and to a lesser extent Amazon.

It's not just Morgan Stanley and TD: Sanchit Vir Gogia, chief analyst at Greyhound Research, said the banking divergence as a critical warning sign. “The difference in sentiment between US and Asian banks isn’t just a minor detail; it’s the first serious sign of financial friction in Oracle’s hyperscale ambitions,” he said. The $300 billion OpenAI deal may look impressive, he added, but “when you look closer, it’s built on backlog with no guaranteed revenue and massive capex requirements.”

Gogia argued that enterprises need to fundamentally rethink how they view Oracle cloud contracts. “CIOs need to treat Oracle’s cloud buildout not as a service agreement, but as a shared infrastructure risk,” he said. “If they can’t fund it, they can’t build it. And if they can’t build it, you can’t run your workloads.

And all of this, of course, takes place against a background of historic cash incineration by Oracle and negative cash burn as far as the eye can see, making what until recently was unthinkably, all too possible. 

So with the company facing a creeping squeeze of corporate distress and junk bond spreads as sentiments turns apocalyptic, amid growing speculation it will be forced to lay off tens of thousands and liquidate its best assets, Oracle has predictably panicked, and on Sunday it unexpectedly announced plans to raise $45 billion to $50 billion this year through a combination of debt and equity sales to build additional cloud infrastructure capacity.

The company plans to raise half of the funds via equity-linked and common equity issuances, including mandatory convertible preferred securities and through an at-the-market equity program of as much as $20 billion, something will will certainly depress its stock for the foreseeable future as it sells stock on even the smallest of breakouts.  The rest of its funding target would be raised via a single issuance of bonds early in 2026. The company borrowed $18 billion in 2025 in what was one of the year’s largest corporate bond offerings. 

Of course, as noted above, if Oracle does not raise the money, it may very well find itself in a liquidity crisis or much worse, so all David Ellison is doing, is whatever the market said he should have done long ago.  

According to Bloomberg, Oracle is raising money to build additional capacity to meet the contracted demand from the company’s largest cloud customers, including Advanced Micro Devices, Meta Platforms, Nvidia, OpenAI, TikTok and xAI, the company said in a statement Sunday.

The announcement coincides with persistent fears about whether massive artificial intelligence-linked investments by tech companies such as Oracle will pay off. The company’s shares have fallen around 50% from its record price on Sept. 10, wiping out roughly $460 billion in market value. And the looming stock sales will lead to even bigger losses.

Developing AI data centers - without concurrently collecting cash from its clients - has pushed Oracle’s free cash flow negative, where it is expected to stay until 2030. As a result of its terribly structured deals, the company is on the hook for tens for billions of dollars in spending in the coming years, largely on semiconductors and leases.

Issuing equity would help send a message to the market that Oracle is serious about maintaining its investment-grade debt rating, wrote John DiFucci, an analyst at Guggenheim, in a January note.

“If Oracle can complete the raise successfully it will start digging itself out of the considerable hole it has found itself in,” said Gil Luria, an analyst at DA Davidson & Co.

Actually, even if Oracle can complete the raise, it still is facing massive funding shortfalls; and if it can't it could very well be lights out. 

Making matters worse, the debt market will not have an appetite for this much investment-grade debt from Oracle given its existing commitments and trading in its credit default swaps, Luria said. Issuing equity may also hurt the company’s stock price, which in turn will spill over into its bonds. 

Making this significant of an announcement on a Sunday afternoon is unusual for a mature company like Oracle. The timing, “could be the management team trying to stop the endless slide in the share price by trying to give investors some hope ahead of Monday’s open,” Luria said. Judging by where futures are trading, the company could not have picked a worse day for its announcement which will likely see the stock tumble double digits when it opens for trading. 

A key part of Oracle’s cloud investment is its contract with OpenAI, which has committed to spending about $300 billion to rent servers from Oracle. OpenAI is not profitable, adding to worries about the financial strains from huge capital expenditures without a clear timeline for meaningful returns. In fact, OpenAI has some $1.4 trillion in commitments to various other companies and if for some reason the company announces this money won't be forthcoming in time... well, just don't be stuck holding the world's biggest circle jerk bag. 

More in the full Morgan Stanley and TD Cowen notes available to pro subs.


Friday, January 30, 2026

Something BIG Is Happening to Silver (China’s Emergency Action Changes Everything) by the Asian Guy

   If you are worried about what's going on in the Gold and Silver markets, listen to the clear explanation below. 

  The moves at this stage are irrelevant. What's important is that the markets are breaking down and consequently are not able to reprice the precious metals in order to respond to the rush towards real, actual assets. 

  As paper assets revert to their intrinsic value of zero (as they have always done historically), the price of real assets are exploding in nominal terms. The more tensions, instabilities and conflicts around, the faster the pace. 

  This is history happening, not markets misbehaving. 

https://www.youtube.com/watch?v=0insCYGksCo

 

  And the follow up over the weekend!

 

 https://www.youtube.com/watch?v=cRR7-8-0SvQ

 

  We're in trouble!  

 

 

 

Climate Alarmists Are Often Wrong But Never in Doubt

   We've spoken so many time about global warming that there should be nothing left to say. Thankfully a cold winter is here to remind u...