David Dayen at The American Prospect has a decent explainer article
The AI Bubble Is Bigger Than You Think. It gets into the so-called "private credit" mechanisms being abused to inflate this bubble, and why they are so dangerous. This stuff used to be called "shadow banking" because private entities that are not chartered banks are essentially providing banking services to other private entities. What happens if there's a panic and the equivalent of a bank run? Who knows!
Silicon Valley and Wall Street are in sync: conjuring up sketchy credit deals that are pointing us toward another financial crash.
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“We have sealed the deal on another financial crisis—the question is size,” said one former congressional staffer.
#AI #GenAI #GenerativeAI #AIBubble #grift #CasinoEconomy #FinancialCrash #GreatRecession