The Grant Williams Podcast Ep. 134 - Steve Clapham

In this episode of The Grant Williams Podcast, I’m joined by returning guest, forensic accountant and investment analyst Steve Clapham for a wide-ranging conversation about what happens when markets built on cheap money, leverage and compelling narratives are forced to confront a rather less forgiving financial reality. We begin with the normalisation of interest rates, the mounting cost of servicing government debt and the growing strains on US finances before turning to private equity, where Steve argues that much of the industry’s extraordinary historic performance came not from operational brilliance but from falling rates, expanding multiples and leverage—a combination that looks very different when financing costs rise and exits become harder. From there, we examine the economics of AI, including the uncomfortable gap between soaring GPU and data-centre costs and falling token prices, the valuations being attached to companies such as OpenAI and Anthropic, and some intriguing features of CoreWeave’s accounts. Steve also explains why proposed changes to SEC reporting requirements could make forensic analysis—and the detection of fraud—considerably more difficult. Finally, we discuss his plans for 6040 Publishing and why, after years in which a good story could carry almost anything, markets may once again be entering an environment where cash flows, balance sheets and valuation begin to matter.

Every episode of the Grant Williams podcast, including This Week In Doom, The End Game, The Super Terrific Happy Hour, The Narrative Game, Kaos Theory, Shifts Happen and The Hundred Year Pivot, is available to Copper and Silver Tier subscribers at my website www.Grant-Williams.com. (grant-williams.com.)

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