THE MORNING LINE
Craving a Token Piece of the Rock?
Is there a tokenized investment in your future? With so many white elephants to unload, Wall Street’s rep could come calling on you at any time. He will offer you a virtual piece of America’s future, claiming it will grow wealth for your children and grandchildren. However, when you sit down with this cheery fellow to go over the fine print, just remember that his brain is nearly identical genetically to that of the seagull that swoops down on your lunch at a seaside café.
And exactly which piece of the rock will your hard-earned dollars secure? Almost certainly, the pitch will feature commercial real estate or AI infrastructure. The latter will include not only huge power plants and water coolers, along with acres of computers, but all the hot air exhausted by a Billionaire Boy’s Club that has been hustling some of the biggest projects the galaxy has ever seen.
Hot Air for Sale
Obsolete skyscrapers and AI’s overhyped revenue potential are the chief sources of anxiety in banksters’ portfolios these days, with notional sums at risk of perhaps $20 trillion or more, and growing. All of it has been financed to colossal excess by banks that have grown understandably eager to spread the risk onto rubes like you and me. Voila, the tokenized investment! That’s why tokens were invented: to divvy up epic chunks of glitz into a million pieces small enough for the little guy to get in on the action.
He needn’t worry about being shut out, since the deals just keep coming. So greedy and stupid are the lenders that they are still hatching galactic projects even as warning signs flash red. Oracle’s partnership with OpenAI, for instance. This gambit is slated to launch in 2027, and it is valued at $500 billion. The two companies would build data centers with 4.5 gigawatts of capacity, a tad less than New York City’s annual usage. Will the demand be there? Everyone on the sell side of the equation thinks so, but the outlook is not so optimistic if you ask highly paid tech workers who are being laid off by the tens of thousands these days.
Real estate will be a harder sell for Wall Street’s seagull-brained predators, since we all understand that workers will never return to urban office towers. Their employers cannot successfully order them back, either, since, for reasons of cost and competitive pressures, most big companies no longer do business out of center-city skyscrapers. Still, there the buildings sit, urgently in need of hucksters to spread the cost of perpetually financing them over however many Millennials and Gen-Xers are fortunate enough to have savings to invest.
Rick's Free Picks
GDXJ – Junior Gold Miner ETF (Last:123.75)
We caught a favorable breeze after getting long last week at 121.17, the midpoint Hidden Pivot of the bullish reverse pattern shown. We seldom initiate ‘mechanical’ trades at the red line, but in doing so this time, we may have jumped the gun. The position feels a little precarious, so
$GDXJ – Junior Gold Miner ETF (Last:94.40)
The potentially important low I signaled a week ago caught the exact bottom of a powerful, $20 rally. It came within 11 cents of the 98.50 target for the June contract, then receded by nearly $6 to finish the week. Are bulls depleted? We may know soon, since, with moderate
TNX.X – 10-Year Note Rate (Last:4.40)
Rates on the 10-Year Note came within a hair on Friday of lows not seen since October. My suggestion is to enjoy it while it lasts, since the intraday bottom closely coincided with a Hidden Pivot target at 3.952%. The actual low was 3.956%, which was near enough to consider
$SIH26 – March Silver (Last:89.135)
It took buyers all of three days to gnaw through heavy resistance at the 90.165 midpoint Hidden Pivot of the pattern shown. Adding to the challenge was the 92.015 peak recorded on Feb 4. It had served as a stop-loss for a ‘mechanical’ short from 10 points lower that I
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