The David Lin Report · Monday, September 28, 2026
Bill Smead attributes the rise in interest rates to aggressive borrowing by the U.S. federal government and massive capital expenditure in the AI sector. He states this high demand for money will crowd out other borrowers, leading to a 'fever break' in the market.
“The economics are that the federal government of the United States is borrowing money like drunken sailors on leave, okay?”
“The, uh, hyper scalers are borrowing money like drunken sailors on leave and capital is being demanded intensely to fund a CapEx mania associated with AI.”
“So the demand for money is coming from those sources and that's why it's going up and that is going to crowd out other borrowers.”