#financialbubble — Public Fediverse posts

[edited for name typo]
Here is Prof Richard Murphy’s latest post in taxresearch dot org dot UK.
His ‘musings’ are not frivoloius and they are worth taking note of. Here, he agrees with Paul Krugman on the #AIBubble and its #DataCenterBoom with an intertesting note on #Software.

“His [Paul Krugman] concern, and I think it was a reasonable one, was that there is no evidence at all that what is now happening as a result of the current AI boom will create anything of lasting value. We do not know whether the hardware being built in the form of data centres will prove sustainable. Already, 20% of all electricity in Ireland is being used to power data centres. This makes no sense, and replication on this scale appears impossible.

Likewise, when we look at the software and related IT, the potential rate of advance in technology in this sector is so great, if it lives up to its promise, that everything being created now will be of little use in only two or three years' time.”

Read more here
https://www.taxresearch.org.uk/Blog/2026/05/24/should-we-live-in-fear-of-ai/

##GenAI #AISlop #DataCenterEnergyConsumption #DataCenterWaterConsumption #Economics #FinancialBubble

https://www.europesays.com/people/50176/ EU missing the boat on AI, jeopardising its future, Lagarde warns #ArtificialIntelligence #ChristineLagarde #europe #EuropeanCentralBank #FinancialBubble #future #MissingTheBoat #TechnologicalLeap

If Trump’s War in Iran Spirals Into a Full-Blown Recession, It Could Crush the AI Industry and Spark a Catastrophic Polycrisis

Far be it from tech writers to chart yield curves or forecast jobs data, but it doesn’t take…
#NewsBeep #News #US #USA #UnitedStates #UnitedStatesOfAmerica #Artificialintelligence #AI #ArtificialIntelligence #financialbubble #financialpain #iran #Technology
https://www.newsbeep.com/us/552125/

https://www.europesays.com/ie/267733/ Is the AI boom a bubble waiting to pop? Here’s what history says #AI #Alphabet #ArtificialIntelligence #ArtificialIntelligence #BroadcomInc. #Éire #FinancialBubble #IE #investors #Ireland #MarketStrategist #MichaelHartnett #Microsoft #StockMarket #Technology

Is the AI Boom a Bubble Waiting to Pop? Here’s What History Says

Photographer: Liesa Johannssen/Bloomberg (Bloomberg) — As the artificial intelligence trade continues to push the stock marke…
#NewsBeep #News #US #USA #UnitedStates #UnitedStatesOfAmerica #Artificialintelligence #AI #AlphabetInc #Amazon.comInc #ArtificialIntelligence #Bloomberg #BroadcomInc #financialbubble #Investors #MarketStrategist #MetaPlatformsInc #MichaelHartnett #stockmarket #Technology
https://www.newsbeep.com/us/387693/

Is the AI Boom a Bubble Waiting to Pop? Here’s What History Says

Photographer: Liesa Johannssen/Bloomberg (Bloomberg) — As the artificial intelligence trade continues to push the stock marke…
#NewsBeep #News #US #USA #UnitedStates #UnitedStatesOfAmerica #Artificialintelligence #AI #AlphabetInc #Amazon.comInc #ArtificialIntelligence #Bloomberg #BroadcomInc #financialbubble #Investors #MarketStrategist #MetaPlatformsInc #MichaelHartnett #stockmarket #Technology
https://www.newsbeep.com/us/387693/

People should seriously think about a possible coming marketcrash. The popping of the financial AI bubble will hurt the "normal" economy. Financial markets could take a very big hit. But how do you protect yourself against this coming disaster, as an owner of limited stocks, savings etc.? Going for gold, government bonds, other things? 🤔
#AI #financialbubble #marketcrash #stocks #finance
https://finance.yahoo.com/news/very-troubling-ais-self-investment-spree-sets-off-bubble-alarms-on-wall-street-160524518.html?guccounter=1&guce_referrer=aHR0cHM6Ly9tYXN0b2Rvbi5zb2NpYWwv&guce_referrer_sig=AQAAAAjFEzagEuxeEtpjcymBivanKBOXPUHx1R85YSvSPovFl1aXu-zXilsT-rXgnsGjixwo3qrJaKggG2judxKZdUIVJje95muy1OX7g02-EfAieSMH5Tu-vzMwpIDgQPkLlI9edvuRyg4v7_FQ0AxGOOxFZfApaVGW4oD9w-7CNKEl

Apparently, it wasn't bad enough that we have an AI-driven #FinancialBubble, so we are also digging an #EconomicSinkhole below it.

Who is NOT thinking this is a bubble!?!

"The AI boom's reliance on circular deals is raising fears of a bubble" (NBC)

#ai #llms #AIHype #GenAI #tech #bullshit #hype #techbros #financialbubble #AIBubble

https://www.nbcnews.com/business/economy/openai-nvidia-amd-deals-risks-rcna234806

"Add it all up, and time is not on the data center's side. The finance guru estimates that the "AI datacenters to be built in 2025 will suffer $40 billion of annual depreciation, while generating somewhere between $15 and $20 billion of revenue."

In other words, new data centers have a very tiny runway in which to achieve profits that currently remain way out of reach. By Kupperman's projections, a brand new data center will quickly become a Theseus' ship made up of some of the most expensive technology money can buy. If a new data center doesn't start raking in mountains of cash ASAP, the cost to maintain its aging parts will rapidly overtake the revenue it can bring in.

Given the current rate at which tech companies are spending money without much return — a long-term bet that AI will all but make human labor obsolete — Kupperman estimates that revenue would have to increase ten-fold just to break even. Anything's possible, of course, but it doesn't seem like a hot bet.

"I don’t see how there can ever be any return on investment given the current math," he wrote."

https://futurism.com/data-centers-financial-bubble

#AI #GenerativeAI #DataCenters #BigTech #FinancialBubble

#SwastiCar #musk #tesla #boycotttesla #financialbubble #nazi #trump

@economics

"All the Devils from 2008 Are Back at the Megabanks: Leverage, Off-Balance-Sheet Debt, Over $192 Trillion in Derivatives, Shaky Capital Levels": https://wallstreetonparade.com/2024/08/all-the-devils-from-2008-are-back-at-the-megabanks-leverage-off-balance-sheet-debt-over-192-trillion-in-derivatives-shaky-capital-levels/

#upcoming #bubble #finance #derivatives #financialBubble #financialCrisis #GoldmanSachs #JPMorganChase #CitiBank #JPMorgan #Citigroup #money #liquidity #megaBanks #banks #banking #USPol #Fed #USPolitics

"In aggregate, every share must be held by someone.
[…]
"Last week, our most reliable measure of stock market valuations hit the highest extreme in history. […] It was because people were willing to exchange record numbers of dollars for the privilege, hope, and excitement of getting shares of stock.

[…] It’s just a bubble."

John P. Hussman: https://www.hussmanfunds.com/comment/mc240721/

#investors #shares #stocks #upcoming #bubble #finance #equities #financialBubble #financialCrisis #investment #money #liquidity