Zero Hedge

SpaceX IPO Hype Ignites Blast Off For This Korean Broker Stock

SpaceX IPO Hype Ignites Blast Off For This Korean Broker Stock

The SpaceX IPO, potentially launching as early as mid-June, is set to accelerate the "space investment" theme we previously outlined, with Elon Musk's rocket company rumored to target about $50 billion in proceeds at a $1.5 trillion valuation.

Early bullish sentiment is already appearing in one public-market proxy: Seoul-based Mirae Asset Securities Co., which has about $400 million of exposure to SpaceX and xAI, and has surged to the top spot on MSCI's broadest global stock index performance so far this year.

Ha SeokKeun, CEO at Eugene Asset Management Co., was quoted by Bloomberg as saying that Mirae Asset's fundamentals are improving due to the strong Korean stock market, while its SpaceX position provides an additional catalyst, allowing investors to capture two sources of value simultaneously.

Mirae Asset's brokerage revenue jumped to a record in 2025, up 43% over the previous year, according to its earnings report last week. The stock is trading at 21 times forward earnings estimates, or triple its five-year average.

KB Securities Co. analyst Kang Seunggun warned that the stock's valuation is elevated and that the benefits of its high portfolio valuations remain unclear.

There was roughly a one-month lag between the corporate media headlines about the SpaceX IPO in December and the market pricing in Mirae Asset's SpaceX exposure.

"Most of the earnings increase comes from unrealized gains in consolidated funds, limiting the direct impact on standalone capital," Kang wrote in a note earlier this month. "As a result, we see greater uncertainty in translating valuation gains into shareholder returns."

We have told readers the space theme is well underway, as well as ways to profit:

A year ago, we mapped out Starlink's satellite supply chain as the space theme started to emerge:

Could the AI bubble morph into the space bubble?

Tyler Durden Fri, 02/20/2026 - 15:00

Steve Cohen Tops Hedge Fund Rich List With $3.4 Billion Haul

Steve Cohen Tops Hedge Fund Rich List With $3.4 Billion Haul

Steve Cohen spent last fall doing something few billionaire owners enjoy: apologizing. As the New York Mets staggered through a bruising 2025 campaign, he took to social media to tell fans he was sorry for the disappointment at Citi Field. Yet even as the baseball season fizzled, Cohen was clinching a very different kind of pennant, according to Bloomberg.

The founder of Point72 Asset Management finished the year as the highest-paid hedge fund manager on Bloomberg’s annual ranking, pocketing an estimated $3.4 billion. That works out to more than $9 million every day — a staggering haul even by Wall Street standards. For the first time since the list began, Cohen sat alone at the top.

The contrast is striking. Cohen, 69, bought the Mets in 2020 for a record $2.4 billion and pledged to deliver a championship within three to five years. He backed up that promise with one of the sport’s largest payrolls. But while October glory in Queens remains elusive, his investment firm in Stamford, Connecticut, has flourished.

Point72’s ascent is particularly notable given its history. Cohen’s former firm, SAC Capital, pleaded guilty in 2013 to insider-trading charges and returned outside investors’ money; Cohen himself denied wrongdoing. When Point72 reopened to clients in 2018, skeptics wondered whether investors would return. They did — quickly and in size. More than $4 billion poured in at launch, followed by steady inflows that have helped lift assets under management to $45.7 billion. That scale places it among the industry’s largest multistrategy operations, competing with firms such as Citadel and Millennium Management.

Bloomberg writes that Cohen’s 2025 payday outpaced several longtime rivals. David Tepper of Appaloosa Management claimed second place with $3.2 billion, while Izzy Englander of Millennium followed closely at $3.1 billion. Ken Griffin, who has frequently dominated the rankings in past years, earned $2.4 billion and placed fifth.

The industry’s biggest names enjoyed a banner year overall. The 10 top earners collected about $22 billion between them, and the expanded top-20 list generated $28.3 billion in total compensation. On average, each of the 20 managers made $1.4 billion — the strongest showing in five years and the largest number of billion-dollar payouts yet recorded. Buoyant, volatile equity markets helped drive hedge fund returns to their best levels since 2009.

Point72 itself delivered a 17.5% gain in its flagship strategies, a solid result that outpaced several multistrategy competitors. Citadel, which has produced returns as high as the mid-30% range in recent years, advanced just over 10% in 2025, its softest performance since 2018.

Flush with capital, Point72 has been expanding aggressively. Over the past decade it has opened a dozen new offices, grown its workforce to roughly 3,000 employees, and built out more than 190 trading teams. The firm has broadened beyond traditional stock picking into macro investing, scaled up its quantitative arm Cubist, and started laying the groundwork for private credit and venture strategies. In one unusual move, it allowed a star portfolio manager to run an internal fund vehicle, which now oversees about $3 billion after posting strong returns last year.

For Cohen, the year underscored a peculiar dual reality. On the diamond, the Mets are still chasing the success their owner promised. In the financial arena, however, he just delivered the most lucrative season of his career.

Tyler Durden Fri, 02/20/2026 - 14:20

Steve Cohen Tops Hedge Fund Rich List With $3.4 Billion Haul

Steve Cohen Tops Hedge Fund Rich List With $3.4 Billion Haul

Steve Cohen spent last fall doing something few billionaire owners enjoy: apologizing. As the New York Mets staggered through a bruising 2025 campaign, he took to social media to tell fans he was sorry for the disappointment at Citi Field. Yet even as the baseball season fizzled, Cohen was clinching a very different kind of pennant, according to Bloomberg.

The founder of Point72 Asset Management finished the year as the highest-paid hedge fund manager on Bloomberg’s annual ranking, pocketing an estimated $3.4 billion. That works out to more than $9 million every day — a staggering haul even by Wall Street standards. For the first time since the list began, Cohen sat alone at the top.

The contrast is striking. Cohen, 69, bought the Mets in 2020 for a record $2.4 billion and pledged to deliver a championship within three to five years. He backed up that promise with one of the sport’s largest payrolls. But while October glory in Queens remains elusive, his investment firm in Stamford, Connecticut, has flourished.

Point72’s ascent is particularly notable given its history. Cohen’s former firm, SAC Capital, pleaded guilty in 2013 to insider-trading charges and returned outside investors’ money; Cohen himself denied wrongdoing. When Point72 reopened to clients in 2018, skeptics wondered whether investors would return. They did — quickly and in size. More than $4 billion poured in at launch, followed by steady inflows that have helped lift assets under management to $45.7 billion. That scale places it among the industry’s largest multistrategy operations, competing with firms such as Citadel and Millennium Management.

Bloomberg writes that Cohen’s 2025 payday outpaced several longtime rivals. David Tepper of Appaloosa Management claimed second place with $3.2 billion, while Izzy Englander of Millennium followed closely at $3.1 billion. Ken Griffin, who has frequently dominated the rankings in past years, earned $2.4 billion and placed fifth.

The industry’s biggest names enjoyed a banner year overall. The 10 top earners collected about $22 billion between them, and the expanded top-20 list generated $28.3 billion in total compensation. On average, each of the 20 managers made $1.4 billion — the strongest showing in five years and the largest number of billion-dollar payouts yet recorded. Buoyant, volatile equity markets helped drive hedge fund returns to their best levels since 2009.

Point72 itself delivered a 17.5% gain in its flagship strategies, a solid result that outpaced several multistrategy competitors. Citadel, which has produced returns as high as the mid-30% range in recent years, advanced just over 10% in 2025, its softest performance since 2018.

Flush with capital, Point72 has been expanding aggressively. Over the past decade it has opened a dozen new offices, grown its workforce to roughly 3,000 employees, and built out more than 190 trading teams. The firm has broadened beyond traditional stock picking into macro investing, scaled up its quantitative arm Cubist, and started laying the groundwork for private credit and venture strategies. In one unusual move, it allowed a star portfolio manager to run an internal fund vehicle, which now oversees about $3 billion after posting strong returns last year.

For Cohen, the year underscored a peculiar dual reality. On the diamond, the Mets are still chasing the success their owner promised. In the financial arena, however, he just delivered the most lucrative season of his career.

Tyler Durden Fri, 02/20/2026 - 14:20

Ford Carrier Group Enters Mediterranean To Join Biggest US Build-Up Since 2003 Iraq War

Ford Carrier Group Enters Mediterranean To Join Biggest US Build-Up Since 2003 Iraq War

Open source monitors as well as US and Middle East media have confirmed that the USS Gerald R. Ford, the world’s largest aircraft carrier, has entered the Mediterranean Sea, having sailed passed the Strait of Gibraltar on Friday.

This is the second carrier strike group expected to soon operate directly in the CENTCOM area of responsibility, amid the massive military build-up and pressure campaign against Iran. It was sent from the Caribbean earlier this month, extending its planned deployment.

USS Ford entering the Mediterranean. Via @dparody

The USS Mahan Arleigh Burke-class destroyer, which is accompanying the USS Gerald R. Ford, is also now crossing the Strait of Gibraltar, maritime tracking analysis shows.

The aircraft carrier will likely take several more days to reach the Middle East and be poised to operate against Iran - so it looks to be in place by start of next week.

According to Bloomberg and other outlets, the US has now amassed the biggest force in the Middle East since the 2003 invasion of Iraq. There is administration talk of "limited strikes" - but clearly Washington is getting ready for all escalation scenarios.

The Ford's entry into Mediterranean waters took longer than expected because it was reportedly conducting replenishment-at-sea, again suggesting the nuclear-powered vessel is readying for a long, or sustained campaign.

Diplomacy seems to be continuing, but also with Trump himself on Friday confirming that he's considering 'limited' strikes on Iran in order to force an Iran deal on Washington's terms:

The reports come after Trump publicly told Iran that it has “10 to 15 days” to cut a deal over its nuclear program, as the US continues its vast military build up in the region.

“We’re either going to get a deal, or it’s going to be unfortunate for them,” Trump told reporters on board Air Force One yesterday. He added that negotiations could be allowed to continue for another 10 to 15 days, a deadline the president described as “pretty much” the “maximum”.

“I would think that would be enough time,” Trump said.

So there is perhaps time to breathe, while Iranian officials continue to scramble, hoping to stave off attack. According to fresh Reuters reporting:

Iran to present its draft in 2–3 days, with further talks expected within a week, its foreign minister says -adding a diplomatic deal with the U.S. is “within reach” and could be achieved in a very short time.

But once a potential attack starts, Iran's response is entirely unpredictable, especially after this firm warning communicated formally to the United Nations:

Iranian leaders may consider that they have no choice but to inflict as much pain as possible on American bases and forces in the region, seeing this as a matter of existential survival.

“It will be very hard for the Trump administration to do a one-and-done kind of attack in Iran this time around,” said Ali Vaez, an Iran expert at the International Crisis Group. “Because the Iranians would respond in a way that would make all-out conflict inevitable.”

But the Pentagon seems to be readying for just such a scenario, also while Congress is still days away from belatedly debating a resurrected War Powers push - driven by Reps Khanna and Massie.

Tyler Durden Fri, 02/20/2026 - 14:15

Ford Carrier Group Enters Mediterranean To Join Biggest US Build-Up Since 2003 Iraq War

Ford Carrier Group Enters Mediterranean To Join Biggest US Build-Up Since 2003 Iraq War

Open source monitors as well as US and Middle East media have confirmed that the USS Gerald R. Ford, the world’s largest aircraft carrier, has entered the Mediterranean Sea, having sailed passed the Strait of Gibraltar on Friday.

This is the second carrier strike group expected to soon operate directly in the CENTCOM area of responsibility, amid the massive military build-up and pressure campaign against Iran. It was sent from the Caribbean earlier this month, extending its planned deployment.

USS Ford entering the Mediterranean. Via @dparody

The USS Mahan Arleigh Burke-class destroyer, which is accompanying the USS Gerald R. Ford, is also now crossing the Strait of Gibraltar, maritime tracking analysis shows.

The aircraft carrier will likely take several more days to reach the Middle East and be poised to operate against Iran - so it looks to be in place by start of next week.

According to Bloomberg and other outlets, the US has now amassed the biggest force in the Middle East since the 2003 invasion of Iraq. There is administration talk of "limited strikes" - but clearly Washington is getting ready for all escalation scenarios.

The Ford's entry into Mediterranean waters took longer than expected because it was reportedly conducting replenishment-at-sea, again suggesting the nuclear-powered vessel is readying for a long, or sustained campaign.

Diplomacy seems to be continuing, but also with Trump himself on Friday confirming that he's considering 'limited' strikes on Iran in order to force an Iran deal on Washington's terms:

The reports come after Trump publicly told Iran that it has “10 to 15 days” to cut a deal over its nuclear program, as the US continues its vast military build up in the region.

“We’re either going to get a deal, or it’s going to be unfortunate for them,” Trump told reporters on board Air Force One yesterday. He added that negotiations could be allowed to continue for another 10 to 15 days, a deadline the president described as “pretty much” the “maximum”.

“I would think that would be enough time,” Trump said.

So there is perhaps time to breathe, while Iranian officials continue to scramble, hoping to stave off attack. According to fresh Reuters reporting:

Iran to present its draft in 2–3 days, with further talks expected within a week, its foreign minister says -adding a diplomatic deal with the U.S. is “within reach” and could be achieved in a very short time.

But once a potential attack starts, Iran's response is entirely unpredictable, especially after this firm warning communicated formally to the United Nations:

Iranian leaders may consider that they have no choice but to inflict as much pain as possible on American bases and forces in the region, seeing this as a matter of existential survival.

“It will be very hard for the Trump administration to do a one-and-done kind of attack in Iran this time around,” said Ali Vaez, an Iran expert at the International Crisis Group. “Because the Iranians would respond in a way that would make all-out conflict inevitable.”

But the Pentagon seems to be readying for just such a scenario, also while Congress is still days away from belatedly debating a resurrected War Powers push - driven by Reps Khanna and Massie.

Tyler Durden Fri, 02/20/2026 - 14:15

Judge Temporarily Blocks Democrat-Backed Referendum To Redraw Virginia's Congressional Map

Judge Temporarily Blocks Democrat-Backed Referendum To Redraw Virginia's Congressional Map

Authored by Aldgra Fredly via The Epoch Times,

A county judge in Virginia issued an emergency restraining order on Feb. 19, pausing a referendum backed by Democrats that aims to redraw the state’s congressional maps.

Tazewell County Circuit Judge Jack Hurley issued the order following a Feb. 18 motion by the National Republican Congressional Committee (NRCC) that sought to challenge House Bill 1384.

HB1384 schedules a referendum for April 21 on a proposed constitutional amendment to allow the General Assembly to redraw the state’s congressional districts.

Virginia’s redistricting plan was projected to give Democrats four more U.S. House seats.

The Republican request for a restraining order argued that Democrats were ramming redistricting-related bills through the Legislature despite legal hurdles that prevent such a rushed process.

In its Feb. 18 filing, NRCC argued that HB1384 violates the Constitution by calling a referendum less than 90 days after it cleared the Legislature for the second time.

The Constitution requires at least 90 days between the final passage and submission to the voters, according to the filing.

In his ruling, Hurley found that temporary relief was warranted in this case to preserve “the status quo between the parties pending a hearing on a motion for a preliminary injunction.”

He also found the plaintiffs were likely to succeed in their claim that ballot language, as set by HB1384, violates the state’s Constitution because it is misleading, in particular, the “restore fairness” language, because it “would lead a voter to believe he or she were doing something unfair by voting against the proposed amendment.”

Hurley’s order temporarily restrains local officials from “administering, preparing for, taking any action to further the procedure of the referendum, or otherwise moving forward with causing an election to be held on the proposed constitutional amendment contained within House Joint Resolution 6007.”

The restraining order will remain in effect through March 18, according to the ruling. Early voting on the amendment was scheduled to begin on March 6 and conclude on April 21.

In a statement, NRCC spokesperson Mike Marinella hailed Hurley’s order as a “massive win in defending honest representation” for all residents in Virginia.

“For a second time, the Virginia courts have ruled against Virginia Democrats’ partisan attempt to ignore their own Constitution and rig the system in their favor,” Marinella said.

Hurley had initially blocked the effort in a January ruling, but the Virginia Supreme Court later allowed the plan to proceed to an April voter referendum after an appeal.

Hurley’s latest order has now halted the ballot initiative.

Virginia House Speaker Don Scott, a Democrat, has indicated the Democratic Party will appeal the judge’s decision.

He said he is confident Hurley’s latest order will not stand, given the state Supreme Court’s earlier reversal of his previous order.

“The Supreme Court of Virginia has already made clear that this matter will go to the voters, but Republicans unhappy with that ruling went back to their friendly judge,” Scott said.

House Minority Leader Hakeem Jeffries (D-N.Y.) told CNN on Feb. 15 that Democrats will do “whatever it takes” to make Virginia’s redistricting plan successful, adding the party is ready to spend “tens of millions of dollars” on the Virginia ballot initiative.

“Republicans started this redistricting war, and Democrats have made it clear we’re going to finish it. We’re going to make sure that there is a fair national map,” he said.

Republicans, who hold a narrow House majority, have already passed redistricting plans in Texas, Missouri, Ohio, and North Carolina.

Earlier this year, Florida Gov. Ron DeSantis said he would call a special session for April for the Sunshine State’s GOP-controlled Legislature to draw new U.S. House districts.

Tyler Durden Fri, 02/20/2026 - 14:00

Judge Temporarily Blocks Democrat-Backed Referendum To Redraw Virginia's Congressional Map

Judge Temporarily Blocks Democrat-Backed Referendum To Redraw Virginia's Congressional Map

Authored by Aldgra Fredly via The Epoch Times,

A county judge in Virginia issued an emergency restraining order on Feb. 19, pausing a referendum backed by Democrats that aims to redraw the state’s congressional maps.

Tazewell County Circuit Judge Jack Hurley issued the order following a Feb. 18 motion by the National Republican Congressional Committee (NRCC) that sought to challenge House Bill 1384.

HB1384 schedules a referendum for April 21 on a proposed constitutional amendment to allow the General Assembly to redraw the state’s congressional districts.

Virginia’s redistricting plan was projected to give Democrats four more U.S. House seats.

The Republican request for a restraining order argued that Democrats were ramming redistricting-related bills through the Legislature despite legal hurdles that prevent such a rushed process.

In its Feb. 18 filing, NRCC argued that HB1384 violates the Constitution by calling a referendum less than 90 days after it cleared the Legislature for the second time.

The Constitution requires at least 90 days between the final passage and submission to the voters, according to the filing.

In his ruling, Hurley found that temporary relief was warranted in this case to preserve “the status quo between the parties pending a hearing on a motion for a preliminary injunction.”

He also found the plaintiffs were likely to succeed in their claim that ballot language, as set by HB1384, violates the state’s Constitution because it is misleading, in particular, the “restore fairness” language, because it “would lead a voter to believe he or she were doing something unfair by voting against the proposed amendment.”

Hurley’s order temporarily restrains local officials from “administering, preparing for, taking any action to further the procedure of the referendum, or otherwise moving forward with causing an election to be held on the proposed constitutional amendment contained within House Joint Resolution 6007.”

The restraining order will remain in effect through March 18, according to the ruling. Early voting on the amendment was scheduled to begin on March 6 and conclude on April 21.

In a statement, NRCC spokesperson Mike Marinella hailed Hurley’s order as a “massive win in defending honest representation” for all residents in Virginia.

“For a second time, the Virginia courts have ruled against Virginia Democrats’ partisan attempt to ignore their own Constitution and rig the system in their favor,” Marinella said.

Hurley had initially blocked the effort in a January ruling, but the Virginia Supreme Court later allowed the plan to proceed to an April voter referendum after an appeal.

Hurley’s latest order has now halted the ballot initiative.

Virginia House Speaker Don Scott, a Democrat, has indicated the Democratic Party will appeal the judge’s decision.

He said he is confident Hurley’s latest order will not stand, given the state Supreme Court’s earlier reversal of his previous order.

“The Supreme Court of Virginia has already made clear that this matter will go to the voters, but Republicans unhappy with that ruling went back to their friendly judge,” Scott said.

House Minority Leader Hakeem Jeffries (D-N.Y.) told CNN on Feb. 15 that Democrats will do “whatever it takes” to make Virginia’s redistricting plan successful, adding the party is ready to spend “tens of millions of dollars” on the Virginia ballot initiative.

“Republicans started this redistricting war, and Democrats have made it clear we’re going to finish it. We’re going to make sure that there is a fair national map,” he said.

Republicans, who hold a narrow House majority, have already passed redistricting plans in Texas, Missouri, Ohio, and North Carolina.

Earlier this year, Florida Gov. Ron DeSantis said he would call a special session for April for the Sunshine State’s GOP-controlled Legislature to draw new U.S. House districts.

Tyler Durden Fri, 02/20/2026 - 14:00

"We Saw It. We Passed": Blue Owl Fails To Secure Third Party Funding For $4 Billion Data Center

"We Saw It. We Passed": Blue Owl Fails To Secure Third Party Funding For $4 Billion Data Center

As we discussed extensively yesterday, Blue Owl already has huge headaches with its software exposure, being forced to dump a substantial amount of its SaaS-linked loans (to related parties among others) as it gates retail investors in its private credit fund amid a tsunami of redemption requests. We now learn that the massive private credit asset manager is also facing major hardware challenges too. 

According to Insider, Blue Owl - which is also a leading investor in the data center boom funding countless projects with private loans - was unable to arrange financing for a $4 billion data center it is co-developing in Pennsylvania after pitching lenders to help bankroll the project in recent months.

The facility, located in Lancaster county 80 miles west of Philadelphia, will be occupied by CoreWeave, a junk-rated provider of cloud computing services that has become a closely watched name in the AI race for its rapid expansion due to the massive debt load it took on to fund that expansion which has sent its credit default swaps to record wides.

CoreWeave's Lancater data center: Photo: Bloomberg/Getty Images

An executive who arranges debt for major data center deals told Insider that the lack of interest in the Lancaster project was due to growing caution among lenders and investors about taking on sizable exposures to AI players with less-than-sterling credit. CoreWeave  has a junk rating of B1/B+, according to S&P and Moodys

"We saw it. We passed," a senior executive at a large specialty lender told Insider.

A Blue Owl spokesman said that the company had "considered" third-party financing for the Lancaster project "as we would with any transaction as we explore alternatives before choosing the most attractive path forward." This suggests that not only was Blue Owl unwilling to fund the project internally, but when it tried to syndicate the private loan, the phone calls went straight to voicemail. 

Understandably, already sweating under the spotlight of the market which has sent its stock price crashing in recent weeks, the Blue Owl spokesman added that the project, which he said is already under construction, "is fully funded, on time, and on budget." It wasn't immediately clear who had "funded" the project is, as Insider reports, 3rd party lenders had balked while Blue Owl itself was aggressively dumping its own software exposure.

To that point, Insider notes that it is unclear whether Blue Owl has been funding construction entirely from its own capital. If Blue Owl is unable to raise debt for the Lancaster development, the company - already facing massive redemption requests across its various funds - would be on the hook for a potentially huge outlay of cash to pay for the data center's construction.

The situation shows the complications and risks involved in financing the massive buildout of infrastructure for AI computing. Brennan Hawken, an equity analyst at BMO Capital Markets who covers Blue Owl, said that difficulties to raise debt for the Lancaster project would raise concern.

"I'm not familiar with this deal, but if there is a struggle to find the debt financing, that's a bit of a red flag that I would want to drill into," Hawken said.

How we got here

Last summer, CoreWeave announced it would lease 100 megawatts of initial capacity at the Lancaster data center and potentially expand its commitment to 300 megawatts. The company said it would pour up to $6 billion into the project to equip it with chips and other cloud infrastructure. A month later, in August, Chirisa Technology Parks announced it would partner with Blue Owl and Machine Investment Group to develop the project. The partnership said it would provide $4 billion of funding, an amount separate from CoreWeave's investment, to support the construction of the project's data center facilities. 

In the fall, Blue Owl began shopping the development to potential lenders, a person familiar with that effort told Insider. 

Blue Owl has been one of the more "creative" financial architects of the data center building boom. Last year, it structured an off-balance sheet deal to partner with Meta in the ownership of a large data center campus that Meta will build and operate in Louisiana.

Blue Owl piggybacked on Meta's strong credit to raise $27.3 billion of investment-grade corporate bonds against its share of the project's equity, proceeds that will be used to help pay for construction.

Blue Owl could arrange a similar type of vehicle that could attempt to tap the credit of an investment-grade customer of CoreWeave's who might use the Lancaster facility or Nvidia, the chipmaker that has purchased large stakes in CoreWeave. It could also potentially raise cash for construction debt by tapping large institutional investor clients to pool together a loan, Hawken said.

Much of the development of hyperscale data center campuses has sought to utilize the strong credit ratings and deep pockets of big-tech partners.

Coreweave's data center challenges are only the latest hurdle that the AI supercycle is facing now that the market has realized the trillions in future funding needs will have to be largely filled with debt, including government funding (See "It Will Take $5 Trillion To Fund The AI Cycle, And The US Government Is On The Hook For Over $1 Trillion")

Insider previously reported that major banks had recent difficulty selling off pieces of $38 billion of debt to finance the construction of two data center campuses that will be anchored by Oracle. Banks often sell pieces of such large commitments to other lenders to spread risk and also reap a quick profit.

The slowdown in interest in participating in that financing was due to worries about Oracle's enormous AI spending and whether the tech company's credit rating could be impacted by those outlays. Oracle has since sought to calm the lending market, announcing that it would raise up to $50 billion of cash from stock and bond offerings in order to "maintain a solid investment-grade balance sheet."

Blue Owl stocks tumbled at the open to a fresh multi-year low, although it wasn't clear if that was due to the Coreweave news or because of its mutiple other issues. Coreweave's dump today, on the other hand, can likely be attributed largely to the data center news which, unless it manages to find a generous partner, will only be the start of its headaches. 

 

Tyler Durden Fri, 02/20/2026 - 13:35

"We Saw It. We Passed": Blue Owl Fails To Secure Third Party Funding For $4 Billion Data Center

"We Saw It. We Passed": Blue Owl Fails To Secure Third Party Funding For $4 Billion Data Center

As we discussed extensively yesterday, Blue Owl already has huge headaches with its software exposure, being forced to dump a substantial amount of its SaaS-linked loans (to related parties among others) as it gates retail investors in its private credit fund amid a tsunami of redemption requests. We now learn that the massive private credit asset manager is also facing major hardware challenges too. 

According to Insider, Blue Owl - which is also a leading investor in the data center boom funding countless projects with private loans - was unable to arrange financing for a $4 billion data center it is co-developing in Pennsylvania after pitching lenders to help bankroll the project in recent months.

The facility, located in Lancaster county 80 miles west of Philadelphia, will be occupied by CoreWeave, a junk-rated provider of cloud computing services that has become a closely watched name in the AI race for its rapid expansion due to the massive debt load it took on to fund that expansion which has sent its credit default swaps to record wides.

CoreWeave's Lancater data center: Photo: Bloomberg/Getty Images

An executive who arranges debt for major data center deals told Insider that the lack of interest in the Lancaster project was due to growing caution among lenders and investors about taking on sizable exposures to AI players with less-than-sterling credit. CoreWeave  has a junk rating of B1/B+, according to S&P and Moodys

"We saw it. We passed," a senior executive at a large specialty lender told Insider.

A Blue Owl spokesman said that the company had "considered" third-party financing for the Lancaster project "as we would with any transaction as we explore alternatives before choosing the most attractive path forward." This suggests that not only was Blue Owl unwilling to fund the project internally, but when it tried to syndicate the private loan, the phone calls went straight to voicemail. 

Understandably, already sweating under the spotlight of the market which has sent its stock price crashing in recent weeks, the Blue Owl spokesman added that the project, which he said is already under construction, "is fully funded, on time, and on budget." It wasn't immediately clear who had "funded" the project is, as Insider reports, 3rd party lenders had balked while Blue Owl itself was aggressively dumping its own software exposure.

To that point, Insider notes that it is unclear whether Blue Owl has been funding construction entirely from its own capital. If Blue Owl is unable to raise debt for the Lancaster development, the company - already facing massive redemption requests across its various funds - would be on the hook for a potentially huge outlay of cash to pay for the data center's construction.

The situation shows the complications and risks involved in financing the massive buildout of infrastructure for AI computing. Brennan Hawken, an equity analyst at BMO Capital Markets who covers Blue Owl, said that difficulties to raise debt for the Lancaster project would raise concern.

"I'm not familiar with this deal, but if there is a struggle to find the debt financing, that's a bit of a red flag that I would want to drill into," Hawken said.

How we got here

Last summer, CoreWeave announced it would lease 100 megawatts of initial capacity at the Lancaster data center and potentially expand its commitment to 300 megawatts. The company said it would pour up to $6 billion into the project to equip it with chips and other cloud infrastructure. A month later, in August, Chirisa Technology Parks announced it would partner with Blue Owl and Machine Investment Group to develop the project. The partnership said it would provide $4 billion of funding, an amount separate from CoreWeave's investment, to support the construction of the project's data center facilities. 

In the fall, Blue Owl began shopping the development to potential lenders, a person familiar with that effort told Insider. 

Blue Owl has been one of the more "creative" financial architects of the data center building boom. Last year, it structured an off-balance sheet deal to partner with Meta in the ownership of a large data center campus that Meta will build and operate in Louisiana.

Blue Owl piggybacked on Meta's strong credit to raise $27.3 billion of investment-grade corporate bonds against its share of the project's equity, proceeds that will be used to help pay for construction.

Blue Owl could arrange a similar type of vehicle that could attempt to tap the credit of an investment-grade customer of CoreWeave's who might use the Lancaster facility or Nvidia, the chipmaker that has purchased large stakes in CoreWeave. It could also potentially raise cash for construction debt by tapping large institutional investor clients to pool together a loan, Hawken said.

Much of the development of hyperscale data center campuses has sought to utilize the strong credit ratings and deep pockets of big-tech partners.

Coreweave's data center challenges are only the latest hurdle that the AI supercycle is facing now that the market has realized the trillions in future funding needs will have to be largely filled with debt, including government funding (See "It Will Take $5 Trillion To Fund The AI Cycle, And The US Government Is On The Hook For Over $1 Trillion")

Insider previously reported that major banks had recent difficulty selling off pieces of $38 billion of debt to finance the construction of two data center campuses that will be anchored by Oracle. Banks often sell pieces of such large commitments to other lenders to spread risk and also reap a quick profit.

The slowdown in interest in participating in that financing was due to worries about Oracle's enormous AI spending and whether the tech company's credit rating could be impacted by those outlays. Oracle has since sought to calm the lending market, announcing that it would raise up to $50 billion of cash from stock and bond offerings in order to "maintain a solid investment-grade balance sheet."

Blue Owl stocks tumbled at the open to a fresh multi-year low, although it wasn't clear if that was due to the Coreweave news or because of its mutiple other issues. Coreweave's dump today, on the other hand, can likely be attributed largely to the data center news which, unless it manages to find a generous partner, will only be the start of its headaches. 

 

Tyler Durden Fri, 02/20/2026 - 13:35

Oakland Mayor, Who Supported 'Defund The Police' Has Her Car Stolen

Oakland Mayor, Who Supported 'Defund The Police' Has Her Car Stolen

Authored by Luis Cornelio via Headline USA,

An alleged thief stole Oakland Mayor Barbara Lee’s city-owned vehicle after breaking into her office just two days earlier, according to the California edition of the New York Post. 

The Oakland Police Department recovered the vehicle within hours, two days after somebody tampered with her office’s door. 

“The Oakland Police Department is investigating the theft of a city-owned vehicle. On February 17, 2026, OPD was notified that the vehicle was stolen from Oakland City Hall,” the OPD said through a spokesperson.

“The vehicle was recovered within hours. OPD is following up on potential leads.” 

Lee took office in May 2025 after serving more than two decades in Congress.

She previously expressed support for efforts to “restructure” and “overhaul” policing during the 2020 protests, language widely associated with the “defund the police” movement. 

In 2020, she told Politico she was “really proud” of the Minneapolis City Council’s pledge to defund the local police. 

In December 2020, she also said, “We have to restructure our funding priorities in terms of how we make our communities safe.” 

“We have seen video after video over the last few weeks of peaceful protestors being met with extreme violence from police,” Lee said during the 2020 protest in favor of George Floyd.

“We can’t wait. It’s time to overhaul our policing system.”  

According to the New York Post, police already had an arrest warrant for the alleged suspect.  

In a statement, Lee claimed her administration takes crimes seriously:  

“As with criminal cases such as this, the Oakland Police Department is actively investigating, and we cannot comment further at this time. No one in Oakland should have to worry about their car being stolen, whether they’re a resident, a city worker, or the Mayor. Public safety is a priority across our entire city.” 

The theft comes amid a broader problem for Oakland as the city reported 9,914 motor vehicle thefts in 2024, one of the highest rates in the country. 

Tyler Durden Fri, 02/20/2026 - 13:20

Oakland Mayor, Who Supported 'Defund The Police' Has Her Car Stolen

Oakland Mayor, Who Supported 'Defund The Police' Has Her Car Stolen

Authored by Luis Cornelio via Headline USA,

An alleged thief stole Oakland Mayor Barbara Lee’s city-owned vehicle after breaking into her office just two days earlier, according to the California edition of the New York Post. 

The Oakland Police Department recovered the vehicle within hours, two days after somebody tampered with her office’s door. 

“The Oakland Police Department is investigating the theft of a city-owned vehicle. On February 17, 2026, OPD was notified that the vehicle was stolen from Oakland City Hall,” the OPD said through a spokesperson.

“The vehicle was recovered within hours. OPD is following up on potential leads.” 

Lee took office in May 2025 after serving more than two decades in Congress.

She previously expressed support for efforts to “restructure” and “overhaul” policing during the 2020 protests, language widely associated with the “defund the police” movement. 

In 2020, she told Politico she was “really proud” of the Minneapolis City Council’s pledge to defund the local police. 

In December 2020, she also said, “We have to restructure our funding priorities in terms of how we make our communities safe.” 

“We have seen video after video over the last few weeks of peaceful protestors being met with extreme violence from police,” Lee said during the 2020 protest in favor of George Floyd.

“We can’t wait. It’s time to overhaul our policing system.”  

According to the New York Post, police already had an arrest warrant for the alleged suspect.  

In a statement, Lee claimed her administration takes crimes seriously:  

“As with criminal cases such as this, the Oakland Police Department is actively investigating, and we cannot comment further at this time. No one in Oakland should have to worry about their car being stolen, whether they’re a resident, a city worker, or the Mayor. Public safety is a priority across our entire city.” 

The theft comes amid a broader problem for Oakland as the city reported 9,914 motor vehicle thefts in 2024, one of the highest rates in the country. 

Tyler Durden Fri, 02/20/2026 - 13:20

Goldman's Meeting With Top Memory Supplier Points To Higher Prices As Crunch Worsens

Goldman's Meeting With Top Memory Supplier Points To Higher Prices As Crunch Worsens

The high-bandwidth memory (HBM) shortage is already pressuring the margins of consumer electronics companies, disrupting product launches, and pushing up the prices of TVs and computers. The latest development is Valve's handheld gaming PC, which is reportedly out of stock in select regions as the memory crunch now filters into retail availability.

We have been leaning on institutional channel checks across the semis and hardware coverage universe to gain an insider's perspective on what's happening across the memory space and what to potentially expect in the quarters ahead.

The latest read comes from Goldman analysts led by Giuni Lee, following a discussion with SK Hynix, a critical supplier of HBM chips, on the implications of a very tight memory market.

Lee offered clients five key takeaways from her conversation with SK Hynix:

  1. Memory pricing is likely to growth throughout this year driven by real demand and tight supply,

  2. Healthy inventory levels and strengthening supplier leverage are leading to increased discussions around longer term contracts,

  3. The current tight conventional DRAM S/D could lead to more favorable terms for HBM business in 2027,

  4. The 1c nm ramp in 2026 mainly for conventional DRAM, while for HBM mainly starting from 2027, and

  5. Capex guidance and focus on DRAM/HBM investments are largely inline with GSe. We reiterate our Buy rating on Hynix

On the memory market, Lee delivered clients a detailed readout on current conditions:

Memory pricing growth likely throughout this year driven by real demand and tight supply

Hynix thinks the current memory pricing uptrend could continue throughout this year driven by robust demand from AI customers. The company expects AI customers will continue to maintain sizable investment scale as they are making meaningful progress in their AI services. While the company acknowledged potential despeccing from PC/mobile customers could weigh on memory demand, it still expects upward pricing trajectory also led by limited supply growth. The company mentioned that the industry-wide limited clean room space is contributing to tight supply and favorable condition for memory pricing. The company sees low possibility of meaningful double-booking of memory orders, as customers are aware that memory capacity cannot be increased meaningfully in the short-term, hence they recognize double-booking will not lead to more allocation but rather drive up pricing further.

The rest of Lee's takeaways from her discussion with SK Hynix are available on the Marketdesk.ai portal for professional subscribers.

Tyler Durden Fri, 02/20/2026 - 12:40

Goldman's Meeting With Top Memory Supplier Points To Higher Prices As Crunch Worsens

Goldman's Meeting With Top Memory Supplier Points To Higher Prices As Crunch Worsens

The high-bandwidth memory (HBM) shortage is already pressuring the margins of consumer electronics companies, disrupting product launches, and pushing up the prices of TVs and computers. The latest development is Valve's handheld gaming PC, which is reportedly out of stock in select regions as the memory crunch now filters into retail availability.

We have been leaning on institutional channel checks across the semis and hardware coverage universe to gain an insider's perspective on what's happening across the memory space and what to potentially expect in the quarters ahead.

The latest read comes from Goldman analysts led by Giuni Lee, following a discussion with SK Hynix, a critical supplier of HBM chips, on the implications of a very tight memory market.

Lee offered clients five key takeaways from her conversation with SK Hynix:

  1. Memory pricing is likely to growth throughout this year driven by real demand and tight supply,

  2. Healthy inventory levels and strengthening supplier leverage are leading to increased discussions around longer term contracts,

  3. The current tight conventional DRAM S/D could lead to more favorable terms for HBM business in 2027,

  4. The 1c nm ramp in 2026 mainly for conventional DRAM, while for HBM mainly starting from 2027, and

  5. Capex guidance and focus on DRAM/HBM investments are largely inline with GSe. We reiterate our Buy rating on Hynix

On the memory market, Lee delivered clients a detailed readout on current conditions:

Memory pricing growth likely throughout this year driven by real demand and tight supply

Hynix thinks the current memory pricing uptrend could continue throughout this year driven by robust demand from AI customers. The company expects AI customers will continue to maintain sizable investment scale as they are making meaningful progress in their AI services. While the company acknowledged potential despeccing from PC/mobile customers could weigh on memory demand, it still expects upward pricing trajectory also led by limited supply growth. The company mentioned that the industry-wide limited clean room space is contributing to tight supply and favorable condition for memory pricing. The company sees low possibility of meaningful double-booking of memory orders, as customers are aware that memory capacity cannot be increased meaningfully in the short-term, hence they recognize double-booking will not lead to more allocation but rather drive up pricing further.

The rest of Lee's takeaways from her discussion with SK Hynix are available on the Marketdesk.ai portal for professional subscribers.

Tyler Durden Fri, 02/20/2026 - 12:40

Meta's AI Would Like To Keep You Posting After You're Dead

Meta's AI Would Like To Keep You Posting After You're Dead

Ever since social media became a fixture of daily life, an uncomfortable question has lingered: what should happen to someone’s account after they die? Leave it frozen in time? Hand it to family members as a memorial? Or quietly let it fade into the algorithm?

A few years ago, Meta Platforms explored a far more ambitious possibility, according to Futurism. In 2023, the company received a patent describing how a large language model could be trained on a user’s past posts to simulate their voice and behavior — keeping an account active if the person were “absent,” including in the event of death. The filing, led by CTO Andrew Bosworth, outlined how such a system could generate posts, comments, likes, and even private messages in the user’s style.

The idea was striking, and for many, unsettling. Meta has since said it has no plans to move forward with that example. But the patent offers a snapshot of a moment when tech companies were aggressively testing the limits of what generative AI might do — including extending a person’s digital presence beyond their lifetime.

The Futurism piece says that the concept isn’t entirely theoretical. A small but growing “grief tech” sector has promoted AI tools that recreate voices or personalities of the deceased using photos, recordings, and written messages. Proponents argue that such tools could offer comfort. Critics worry they could complicate the grieving process.

Even within Meta’s own public comments, there has been ambivalence. CEO Mark Zuckerberg has spoken about AI companions as a way to address loneliness and, in a 2023 interview with podcaster Lex Fridman, suggested that interacting with digital representations of loved ones might help some people cope with loss. He also acknowledged the psychological risks and the need for deeper study.

The business logic behind such experiments is difficult to ignore. Platforms like Facebook are filled with dormant accounts — profiles that remain but are rarely updated. More AI-generated activity could mean more engagement and more data. As University of Birmingham law professor Edina Harbinja observed, the commercial incentive is clear, even if the ethical path forward is not.

Others urge caution. University of Virginia sociologist Joseph Davis has argued that part of grieving involves confronting the reality of loss, not blurring it with simulations.

Meta has distanced itself from the patent’s more provocative scenario. Still, its existence underscores how far companies have been willing to push generative AI — and how complex the questions become when technology intersects with death, memory, and identity.

Tyler Durden Fri, 02/20/2026 - 12:00

Meta's AI Would Like To Keep You Posting After You're Dead

Meta's AI Would Like To Keep You Posting After You're Dead

Ever since social media became a fixture of daily life, an uncomfortable question has lingered: what should happen to someone’s account after they die? Leave it frozen in time? Hand it to family members as a memorial? Or quietly let it fade into the algorithm?

A few years ago, Meta Platforms explored a far more ambitious possibility, according to Futurism. In 2023, the company received a patent describing how a large language model could be trained on a user’s past posts to simulate their voice and behavior — keeping an account active if the person were “absent,” including in the event of death. The filing, led by CTO Andrew Bosworth, outlined how such a system could generate posts, comments, likes, and even private messages in the user’s style.

The idea was striking, and for many, unsettling. Meta has since said it has no plans to move forward with that example. But the patent offers a snapshot of a moment when tech companies were aggressively testing the limits of what generative AI might do — including extending a person’s digital presence beyond their lifetime.

The Futurism piece says that the concept isn’t entirely theoretical. A small but growing “grief tech” sector has promoted AI tools that recreate voices or personalities of the deceased using photos, recordings, and written messages. Proponents argue that such tools could offer comfort. Critics worry they could complicate the grieving process.

Even within Meta’s own public comments, there has been ambivalence. CEO Mark Zuckerberg has spoken about AI companions as a way to address loneliness and, in a 2023 interview with podcaster Lex Fridman, suggested that interacting with digital representations of loved ones might help some people cope with loss. He also acknowledged the psychological risks and the need for deeper study.

The business logic behind such experiments is difficult to ignore. Platforms like Facebook are filled with dormant accounts — profiles that remain but are rarely updated. More AI-generated activity could mean more engagement and more data. As University of Birmingham law professor Edina Harbinja observed, the commercial incentive is clear, even if the ethical path forward is not.

Others urge caution. University of Virginia sociologist Joseph Davis has argued that part of grieving involves confronting the reality of loss, not blurring it with simulations.

Meta has distanced itself from the patent’s more provocative scenario. Still, its existence underscores how far companies have been willing to push generative AI — and how complex the questions become when technology intersects with death, memory, and identity.

Tyler Durden Fri, 02/20/2026 - 12:00

Inflation Fears Plummet As UMich's Democratic Bias Is Exposed

Inflation Fears Plummet As UMich's Democratic Bias Is Exposed

After rebounding strongly in preliminary February data (as Democrats came to their senses over the fearmongered Trump tariff-flation), the final UMich sentiment survey print slipped lower with the headline lowered from 57.3 to 56.6. Both Current Conditions and Expectations were lower than the flash print with the latter falling to 2 month lows and the former holding at 4-month highs...

Does anyone else think its weird that all the numbers were exactly the same at 56.6

Source: Bloomberg

Democrats and Republicans led the decrease in inflation expectations...

Source: Bloomberg

UMich Survey Director Joanna Hsu noted that "all index components posted insignificant movements this month; overall, consumers do not perceive any material differences in the economy from last month."

Democrats confidence is at its highest since July 2025...

Year-ahead inflation expectations fell from 4.0% last month to 3.4% this month, the lowest reading since January 2025.

Hsu concludes that "A sizable month-to-month increase in sentiment for the largest stockholders was fully offset by a decline among consumers without stock holdings. Similar divergences were seen across income and education, where higher-income or college educated consumers exhibited increases in sentiment while lower-income or less-educated counterparts did not. With their much stronger income prospects and investment porfolios, wealthier and higher-income consumers feel better insulated from any possible risks to the economy."

Finally, why all this is nonsense (h/t @MikeZaccardi via FundStrat)

Why did UMich suddenly starting weighting their survey to Democrats when Trump was elected?

Tyler Durden Fri, 02/20/2026 - 11:15

Inflation Fears Plummet As UMich's Democratic Bias Is Exposed

Inflation Fears Plummet As UMich's Democratic Bias Is Exposed

After rebounding strongly in preliminary February data (as Democrats came to their senses over the fearmongered Trump tariff-flation), the final UMich sentiment survey print slipped lower with the headline lowered from 57.3 to 56.6. Both Current Conditions and Expectations were lower than the flash print with the latter falling to 2 month lows and the former holding at 4-month highs...

Does anyone else think its weird that all the numbers were exactly the same at 56.6

Source: Bloomberg

Democrats and Republicans led the decrease in inflation expectations...

Source: Bloomberg

UMich Survey Director Joanna Hsu noted that "all index components posted insignificant movements this month; overall, consumers do not perceive any material differences in the economy from last month."

Democrats confidence is at its highest since July 2025...

Year-ahead inflation expectations fell from 4.0% last month to 3.4% this month, the lowest reading since January 2025.

Hsu concludes that "A sizable month-to-month increase in sentiment for the largest stockholders was fully offset by a decline among consumers without stock holdings. Similar divergences were seen across income and education, where higher-income or college educated consumers exhibited increases in sentiment while lower-income or less-educated counterparts did not. With their much stronger income prospects and investment porfolios, wealthier and higher-income consumers feel better insulated from any possible risks to the economy."

Finally, why all this is nonsense (h/t @MikeZaccardi via FundStrat)

Why did UMich suddenly starting weighting their survey to Democrats when Trump was elected?

Tyler Durden Fri, 02/20/2026 - 11:15

Watch: School Kids Chant "F**k ICE" In Disturbing Classroom Presentation

Watch: School Kids Chant "F**k ICE" In Disturbing Classroom Presentation

Authored by Steve Watson via Modernity.news,

A disturbing video has surfaced showing middle school students delivering a classroom presentation that openly attacks U.S. Immigration and Customs Enforcement (ICE) and promotes unchecked immigration.

Dressed in black hoodies, the boys stand before their peers, chanting profanities and gesturing defiantly against the agents protecting America’s borders.

The footage captures the students declaring “F*ck ICE” while raising their middle fingers to federal immigration enforcement.

The presentation pushes a pro-immigration stance while demonizing police and ICE, framing border security as oppression. Such displays reveal how leftist agendas have infiltrated classrooms, turning education into a breeding ground for open-borders extremism that undermines national sovereignty.

Details behind the TikTok clip have not emerged, but this incident aligns with a wave of anti-ICE activism sweeping schools nationwide.

Just weeks ago, students at North Central High School in Indianapolis staged a viral protest against ICE, with critics noting how such actions reflect disengagement from real immigration issues and instead fuel misguided opposition to law enforcement.

Parents and patriots are rightly outraged, seeing this as part of a broader assault on American values. When schools allow kids to spew vulgarity against those enforcing the law, it signals a dangerous shift toward anarchy.

This isn’t isolated. Recall our coverage of the Chicago high schooler assaulted for holding an “I Love ICE” sign during an anti-ICE protest. The student, Danny Spud, was punched after standing alone against the mob.

“Today, students at my high school in Chicago held an Anti-ICE protest. I was the only one that decided to hold a sign that said ‘I Love ICE’. Instead of allowing me to express my opinion, I was assaulted — Just for standing up for law enforcement,” Spud said.

Schools are also censoring conservative and religious figures. In Kansas, a guidance counselor at Marshall Elementary banned students from naming Charlie Kirk, Donald Trump, or Jesus as role models in a “Find Your Voice” assignment.

“The guidance counselor got very uncomfortable and refused to allow this name to be written on the board, yelling that he was ‘not a hero,’ and that he was not a role model,” a report noted.

Higher education fares no better. At the University of Illinois Urbana-Champaign, required courses shove immigration activism down students’ throats, teaching future educators to use terms like “undocumented” and resist ICE.

“No human being is illegal,” one slide proclaims. A whistleblower revealed: “I haven’t actually learned anything for education about, like, how to set up a classroom… just like basic curriculum that kids are going to be taught, like math and science.” Instead, it’s all about radical ideology.

In addition, teachers unions are funneling millions to Soros-linked groups and anti-border causes. Recent filings show the NEA sending cash to dark money outfits for protests and gerrymandering.

“This is absolutely frightening because I’ll bet you the amount of teachers that don’t know where that money is going,” Fox News commentator Emily Compagno commented. Public funds meant for learning are propping up division.

These examples paint a clear picture: America’s education system is under siege by forces intent on eroding borders, faith, and freedom.

Solutions exist. Oklahoma’s “America First Test” for certifying teachers weeds out far-left radicals, banning drag queen events and BLM propaganda. “Either evolve or dissolve,” one exposed teacher training urged—now turned against the indoctrinators. This ensures classrooms prioritize real education over activism.

Leftists panic at the idea of teaching kids to love America. When Stephen Miller announced plans to defund woke culture and promote patriotism, Jemele Hill declared, “This should frighten everyone.” But as Miller stated: “Children will be taught to love America. Children will be taught to be patriots.” Why fear pride in the greatest nation?

 

America’s future hinges on reclaiming schools from this toxic grip. Defund the radicals, empower parents, and restore education that builds patriots—not pawns for globalist schemes. The fight for our kids’ minds is the fight for the republic.

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

Tyler Durden Fri, 02/20/2026 - 10:30

2025 New Home Sales Highest Since 2021

2025 New Home Sales Highest Since 2021

US New Home Sales dipped 1.7% MoM in December (after a 15.5% MoM surge in November)...

...but ended the year at 745k - the highest SAAR since 2021...

"New" home sales have notably decoupled from "used" home sales in the last few years as homebuilders incentivize buyers (reducing margins) and lower prices (reducing revenues)...

Lower mortgage rates support modest further improvements in sales...

Will this be Trump's lead on housing affordability?

Tyler Durden Fri, 02/20/2026 - 10:24

Matt Taibbi: Epstein Files Are "Uniquely Destructive" To Both Political Parties

Matt Taibbi: Epstein Files Are "Uniquely Destructive" To Both Political Parties

Submitted by QTR's Fringe Finance

This week I interviewed Matt Taibbi at a moment when, as he put it, “this is a pretty weird time.” He had just learned that his outlet, Racket News, had been investigated by the British government using what he described as “human intelligence sources and all kinds of crazy stuff.”

“It’s been pretty weird,” he told me. What struck him most was how normalized this kind of pressure has become. Governments, he said, now routinely “hire out private intelligence firms and private PR firms to devise strategies to undermine negative press.” If you’re doing adversarial reporting, he added, “you’ll get swept up in this. So you probably have been, you just don’t know it.”

From there, we moved into the Epstein story, which has become a political third rail. I asked him whether bipartisan silence around certain issues should worry people. Taibbi said most of what happens in Washington is already bipartisan; the public just doesn’t see it. “The thing that we call the news,” he said, is “a sliver of disagreement” between parties. The rest—“98% of the business that’s done there”—happens with quiet agreement.

On the Epstein files, he argued that both parties miscalculated. The Trump camp, he said, built expectations around full transparency and then stumbled. “Dumping tons of stuff out without any context tends to have a lot of unintended consequences,” he said. The result has been politically damaging across the board.

He also pushed back on some of the public narrative. The fascination with Epstein, he said, rests on three assumptions: that Epstein worked for intelligence, that he ran a vast trafficking ring, and that the two were connected through political blackmail. “There’s an abundance of evidence” of serious sexual crimes, he acknowledged. But on the intelligence-blackmail theory, “there’s nothing that puts it all together and says that’s what was happening. It could, but it’s just not there yet.”

What he does see is a slow-burn release strategy. “You’ll notice that they never fully release everything,” he told me. “It’s like Zeno’s paradox. We’re never going to get all the way to the wall with this.” Each new tranche fuels public demand and media frenzy, with the promise that the next batch might contain the “kill shot” that takes down someone powerful.

We then shifted to New York politics and the rise of Zohran Mamdani. Taibbi sees his early proposals—like raising property taxes—as predictable. If state-level backing doesn’t materialize, he suggested, the Democratic Party may distance itself. “The Democratic Party has decided not to back this horse,” he said. In his view, the party faces a structural dilemma: a base that is moving left out of economic frustration, and a national electoral map that may not tolerate that shift.

He connected that frustration to student debt and monetary policy. When I brought up inflation and deficit spending, he traced the arc back to post-2008 policies and the explosion of quantitative easing. “All you’re doing is accelerating inequality on the one hand,” he said, “and you’re raising the debt burden for everybody else.” The result, he argued, is a generation that feels locked out of homeownership and upward mobility.

On immigration and recent ICE enforcement actions, Taibbi resisted simple partisanship. He said he found neighborhood sweeps and masked agents “scary,” comparing aspects of the approach to “an enhanced federal version of stop and frisk.” At the same time, he criticized the ideological shift that made even basic border enforcement seem taboo. “It’s not like having borders is inherently xenophobic,” he said. “It’s just a part of governance. Part of being a nation.”

At the end of the conversation, Taibbi outlined changes at Racket News. He said he had “basically fired” himself as editor-in-chief and brought in new leadership to refocus on document-based investigations. The site, he told me, is doubling down on FOIA-driven reporting and digging into stories like expansive FBI investigations and the British controversy now touching his own outlet.

The through line of our discussion was less about left versus right than about institutions under strain—media, parties, law enforcement, and financial systems alike. Taibbi’s core warning was that much of what truly matters happens in the bipartisan shadows, while the public argues over the sliver that makes it onto cable news.

(WATCH THE FULL VIDEO INTERVIEW WITH MATT HERE). 

Tyler Durden Fri, 02/20/2026 - 10:00

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