Central Bankers warn AI Bubble is similiar to conditions before the Great Depression

[flashman13]

8. I have been saying for some time that conditions are very similar to the period just before the Great Depression.

If you are interested, I highly recommend John Kenneth Galbraith's book, The Great Crash.

The AI industry is a giant incestuous money merry-go-round very similar to the stock holding companies of the 1920s. Then you had this multi-layered situation of holding companies whose only assets were stocks in other holding companies that owned other holding companies. All of this was financed on margin loans. When the actual operating company's stock went down in value, the margin calls went out and the whole mess unraveled in hours. Now it is chip companies that are financing data centers that return the money by buying chips. On paper it looks like they are making money even though paying customers don't provide enough income to pay the light bill.