The Railway Hallucination - Podcast Edition
Benny & The Squirrel Ep. 70 - Unmissable Sunday Show UK Edition
Episode 70 was recorded at 8pm EST on Saturday 18th July, 2026. I laid out a decent amount of how the current LLM Transformer capex boom is just simply nonsense outside of the inner “Cantillion” circle that wants it to keep expanding the same way John Law wanted it to expandere ad infinitum.
Enjoy!
Become a paid subscriber to get full show notes, the episode slide deck, access to my AI Capex Monitor real time website and my Whatsapp channel chat that includes many PMs, traders, and investors alongside my subs as well as LPs where I share a morning summary of the markets, random trades I put on that I find interesting, research, and market color. There is often very interesting discussion that occurs on there among professional investors.
Episode Slide Deck (Below Paywall)
Podcast Summary
AI Infrastructure Mania the new 1840s Railway Mania?
Benny outlines his new research paper comparing the current artificial intelligence buildout to the British railway mania of the 1840s.
The discussion moves to recent market corrections for infrastructure players like Oracle and Micron as credit markets tighten.
Companies like Meta and SpaceX are increasingly functioning as neocloud providers and flooding the market with supply.
BB THOUGHTS:
Reality is that the market correction is off an absurd base and almost no one has proper perspective on what is about to happen. Benny is trying to help folks but naturally every is a natural mean reversionist so its hard for them to understand what is actually happening even when beaten over the top of the head with it weekly. Since the Squirrel is a Victorian native he will pitch you on the rest of the show as to why the UK is now a contrararian buy…
UK Political Landscape (Minute 20)
We discuss the extreme pessimism surrounding the United Kingdom. Sentiment toward UK assets has reached historic lows.
The upcoming by election featuring Nigel Farage and Count Binface, suggesting could be the UK’s peak populism moment.
We are looking at a historically wide valuation gap between US and UK equities despite sterling breaking out on a trade weighted basis.
UK Equity Opportunities (Minute 24)
The UK market is currently being hollowed out by M&A (both strategic and private equity acquisitions of companies like Rotor, Segro and Schroders.
Watch for a shift toward state capitalism and interventionist policies to restructure the domestic economy and force pension fund allocations.
Look at buying UK mid cap equities through (actively managed) investment trusts trading at attractive discounts rather than broad indices like the MSCI UK.
If you act on anything provided in this newsletter, you agree to the terms in this disclaimer. Everything in this newsletter is for educational and entertainment purposes only and NOT investment advice. Nothing in this newsletter is an offer to sell or to buy any security. The author is not responsible for any financial loss you may incur by acting on any information provided in this newsletter. Before making any investment decisions, talk to a financial advisor.