AI is the Big Short. Not the Terminator.

Ed Zitron.

F**k Anthropic. F**k OpenAI. Tech Giants are morons who KNOW NOTHING except how to manipulate AI to make money and to kill people.

Economists Concerned the AI Bubble Is About to Blow

With Wall Street on pins and needles amidst a wide-ranging discussion of AI safety, we may well be living through one of the most consequential weeks for the future of AI in the United States.

That doesn’t necessarily mean we’re headed to an ascendant future for the AI industry. According to London-based firm Capital Economics, the entire economy of the Western world is currently mired in a “late-stage bubble” — a massive misallocation of capital fueling the AI boom, Fortune reported.

In a recent analysis, also flagged by Fortune, Capital Economics senior markets economist James Reilly surveyed eight types of market indicators, finding the vast majority at or near critical levels. These indicators amount to blinking warning lights on the economic dashboard, which have historically only lit up ahead of massive fall-offs in market euphoria: equity and debt issuance is surging, market-cap is concentrated in just a few massive tech stocks, and expected income growth for major indices is looking increasingly unstable.

Breaking down all that marketspeak is beside the point. The fact is, financial markets are under tremendous strain from the AI buildout, and the only precedent for this moment comes from the months before markets crash, like the peak of the dot-com boom.

“On balance, we think the data look consistent with a late-stage bubble,” Reilly wrote in his analysis. “Most of the factors we consider are at, or close to, levels that have preceded past stock market peaks.”

h/t Ereshkigal