nixCraft 🐧Sep 27, 2025

The AI bubble is the only thing keeping the US economy together, Deutsche Bank warns: When the bubble bursts, reality will hit far harder than anyone expects https://www.techspot.com/news/109626-ai-bubble-only-thing-keeping-us-economy-together.html

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The AI bubble is the only thing keeping the US economy together, Deutsche Bank warns

According to a research note recently sent to clients by Deutsche Bank, the AI boom is currently helping the US economy avoid a recession but it cannot...

TechSpot
Show threaddoragasu
@nixCraft It's even better, AI is avoiding recession because of the money spent building data centers, not because it generates any value in itself.
Sep 27, 2025 at 6:53pmWeb
Show threadJeremy KahnSep 27, 2025

@doragasu

It's not the data centers. It's the overvaluation of "AI" stocks that pushes bubble money into pension funds

When that bubble valuation goes away, the idled data centers will be there like the feet of Ozymandias, and the pension funds and 401(k)s will be the barren desert all around

@nixCraft
@cstross

Show threaddoragasuSep 27, 2025
@trochee @nixCraft @cstross That's also happening, but if you read the linked article, it talks about facilities construction.
Show threadlbcp 🦖 Sep 27, 2025
@doragasu @trochee @nixCraft @cstross But they could also build useful stuff, like hospitals or schools.
Show threadCharlie StrossSep 28
@lbcp @doragasu @trochee @nixCraft (a) the cost of a building isn't in construction but in ongoing maintenance and operation, and (b) data centres aren't convertible into some other, more useful, facility. So it's highly focussed economic activity that is essentially pointless (hence wasted).