BIS Warns AI Bubble Could Trigger Credit Market Spillover
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@rohanpaul_ai @ylecun The data I'm seeing doesn't show an AI Bubble. We'll see many of the fly-by-night 'AI API wrapper' companies go out of business, sure. But the AI sector is forming an infrastructure level layer that has solid growth. One example: it's helping strengthen our aging power grid.
@rohanpaul_ai @ylecun This movie is a rerun. Watch the original for insight.
Bank for International Settlements (BIS) is warning that an AI-driven market selloff could quickly spill into credit, because stock losses and credit spreads have moved together in past stress episodes like 2008 and 2020. Private credit has also become a bigger lender to smaller firms, and software borrowers are increasingly tied to multiple lenders, so an AI shock could spread through a less transparent credit system.