This article compares the 2008 property debt collapse, when all the loans reset after the teaser period, to the AI financing boom. The AI financial collapse will occur next year when the debt falls due and the revenues aren’t there. Just as with the property CDOs, all the information for the AI company collapses is there in plain sight, using the AI companies’ own, published, data.
https://www.zerohedge.com/markets/teaser-period-why-ai-boom-hitting-reset-wall
Time for an updated “The Big Short”. The article doesn’t refer to Burry as being one of those who did realise what was about to happen, that the system could not survive the reset of all the two and three year mortgages from the teaser rates for NINJA borrowers.
“That is exactly what the Credit Suisse chart said in 2007. It was right, and it was ignored, and it was ignored for a reason that will be entirely familiar: at the moment it was published, every loan on it was still performing.”
They also point out that with the AI companies being 40% of the SM, that’s 40% of most people’s retirement funds …..