1/x
There's community/regional banks are very different from a big bank:
- Profit comes from within region or industty
- Tied to the health of their local economy
- Core deposits are the funding source
- Diversification is concentrated
These are both good and bad.
2/x 1. They're very tied to a community.
A megabank might see losses in one portfolio but be saved by profits in its tech portfolio. Or a swap with another bank
A community bank in is 100% exposed. If the local industries aren't doing well? They don't do well.
The Saudi–Pakistani mutual defense pact is unprecedented.
Both have now committed in writing to defend one another. Which was kept strategically vague for decades.
But what is this treaty really, and how does it fit into the big picture?
[THREAD]🧵
2/x The first trait: it’s bilateral.
Bilateral = two parties, one-on-one. The deal runs only between Riyadh and Islamabad. Between them alone, so this isn't the start of some multipolar NATO.
Benefits is its direct, fast, and personal, which allows quick responses to crisis.
3/x Benefits of bilateral: clarity and speed. If one is hit, the other knows who’s on the line. No waiting for a committee.
The alliance looks tighter because there are no other voices to dilute it. And decision making loops, info sharing, and policy may be faster.
Movements often confuse the ability to mobilize with the ability to rule. A state that governs by moods rules only until the next one arrives or crushes it.
But how did the French Revolution make this mistake? 🧵
To understand why, you have to look at what political order is. Its enduring legitimacy.
Revolutionaries often assume passion and popularity of ideals naturally equal political order.
This creates an unrealistic expectation. And ends up with them driven by shifting popular ideas.
What follows is maximalism. Where each faction pushes its principles to the edge to prove its legitimacy. Policy and the nation cease to be a matter of national interest.
1/x
Compute resellers vanish first. GPUs and TPUs. They buy time/instances from someone else’s data center. Then resell it. They zero moat and make money from markups. Their whole business model: buy compute at bulk, chop it into smaller units, resell at a premium.
2/x Resellers don’t control the hardware, they don’t have long-term contracts, and they don’t offer a moat. When the AI market slows down, they’re the first to disappear. There’s nothing holding customers to them.