In Reply to: Trumps screws over crime victims posted by mh on October 27, 2026 at 11:03:17
In addition to the risks that AI could kill us all, there are massive financial risks.
The huge amount of AI borrowing is sucking up all available lending, making it very difficult for other borrowers to get loans. Many companies need to refinance expriring loans, and this will squueze them.
Then there is the risk of AI companies defaulting on those loan, with big losses for pension funds, insurance companies, hedge funds, etc.
There are also "circular" financing risks as technology companies, chipmakers and AI developers increasingly invest in, lend to and buy from one another, raising fears that correlated exposures could weaken together during a downturn.
Is the big AI payday coming, that everyone seems to be counting on? Who knows?