The AI Boom May Be Sowing Seeds of Another Financial Crisis

Kevin_Flynn

Looking at GPU prices today, this is an understatement. My finances are in crisis. You know whos winning ... the bitcoin miners retiring unprofitable cards, if they still have them. Good job guys.

duskwuff

"May be"? I think everyone sees this one coming.

MengerSponge

May? I'm pretty sure there's a crisis coming one way or the other, but the crash happens only when they fail to make God In A Box.

acd

1. Hedge funds buy 2. Hedge funds exit 3. Pension funds buy 4. Early investors exit

Fordec

I came across https://www.youtube.com/watch?v=q2nA2szz8dY a few days ago from during the financial crisis, and the things he listed as the four causes all apply here too just replace Property Developers with businesses adopting AI as part of the hype cycle. The debt and capital markets have their part to play this time too, just not the primary problem. But the ingredients are all still there for AI.

xlayn

Goverment regulation... when goverment has regulated wall street and banking industry no issues... as soon as "we will let them regulate, no mam, door plugs will not start failing on airplanes..." things go south.

lnkdinsuxs

I lost my job during the dot com bust (it preceded the GFC) and since that shook me, I was very skeptical of properties making people rich overnight but they literally were! "There's no free lunch!", I told myself, but it was becoming increasingly hard to ignore my barber, the cashier at the grocery store, my dentist, my landscaper - all who had bought highly leveraged properties and had actually made profit. I'm not ashamed to say I started to look into it myself - I was even ready to purchase some leveraged properties myself but kept getting outbid by even crazy offers. Then 2008 happened. It happened suddenly. First it was on the news. Then quietly, people began to stay at home. Then move out. It was both unsettling but also reassuring. My home value halved overnight (it's 800% up now so I'm doing OK) and mu neighborhood went mostly empty (bankruptcies, foreclosures). Now again in 2026, my barber, the cashier at the grocery store, my dentist, my landscaper - all cannot stop talking about Grok Bot, about "Chat" (they usually mean ChatGPT or Gemini). Maybe this time I can get in and get out in time, get real rich! Maybe this time it's different!

a_sewer_rat

It's absurd we're in this position to begin with. Bloomberg taking years to find out what technical people saw months if not years ago.

rvz

So it is of course AI being the one creating the financial rather than crypto. Makes the binance crypto incident look like nothing (and everyone was made whole). The hidden $3.2T AI debt on the other hand...

throwaway27448

Sowing the seeds or failing to paper over? Pretending this is new is baffling.