Blinded by the light ...

Mirror Line

We are on the ultimate AI fast track. Where it goes, nobody knows but the AI bubble is accelerating at light speed while nobody's keeping track ... until now because there's no profit at hand as of yet while debt accumulates in order to keep the musical chairs of circular financing moving but like all things in life, nothing's infinite save for the folly of man forever looking for the next big thing. 

Circular Financing ... Aka Where's the Beef?

In its Global Financial Stability Report published last week, the global financial institution warned that markets everywhere are increasingly at the mercy of precarious AI investments.

The untold billions poured into AI has driven economic growth, the IMF says, but the boom could quickly invert if profits, which so far have largely proven elusive, never come to fruition — or at least not proportionately with the epic investment levels. AI stocks would tank, and the resulting market correction would send powerful shocks across the global economy.

“Growing leverage could be a catalyst for such a correction,” the IMF warned in a blog post about its findings. “Hyperscalers, as the largest data center operators are known, are borrowing more and more, while investors have been leveraging to invest in AI stocks.”

Blinded by the light ... Manfred Mann