Post #1164 by rnam on the Macroeconomic Trends and Risks board

Personal Finance Topics / Macroeconomic Trends and Risks ❤

Unthreaded | Threaded | Whole Thread (5)

Post New | Post Reply | Report Post | Recommend It!

No. of Recommendations: 5

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.

https://www.noahpinion.blog/p/will-data-centers-cr...

Post New | Post Reply | Report Post | Recommend It!

Print the post

Unthreaded | Threaded | Whole Thread (5)

Prev | Next

Announcements

Macroeconomic Trends and Risks FAQ

Contact Shrewd'm
Contact the developer of these message boards.

A community forum supporting civilized, and highly helpful, self-educating investors that come together for Shrewdness and merry spirits. These message boards closely follow the look and feel of the old message boards at boards.fool.com prior to the boards redirected to discussion.fool.com. Shrewd'm is not affiliated with the comprehensive and excellent investment website, The Motley Fool (TMF), in any way. The Shrewd commmunity here has owed, and continues to owe, gratitude to The Motley Fool for nurturing a culture of jovial irreverence towards Wall St, and that tradition will continue here.