Subject: Will data centers crash the economy?
Some of the basic conditions of a financial crisis are at least starting to fall into place:

We have a big story about why “this time is different” — the idea that AI will change everything, and that data centers will thus earn huge returns.

We have a large and increasing amount of debt being used to fund one single sector of the economy (data centers), meaning that the loans’ default probability is probably highly correlated.

We have an opaque corner of the financial system (private credit) that has recently grown from a tiny piece of the system to a very significant piece.

We have systemically important lenders (banks, and possibly insurance companies) enmeshed in the new sector in a multitude of ways.

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