Topic
Business US EU

IMF Warns of Systemic Risk

6h

The IMF warned banks faced $4.5 trillion of exposure to hedge funds and private credit and cautioned that an AI-fueled rally left US equities roughly 10% overvalued, risking a bubble.

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Reposted by Andrea Presbitero

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Reposted by Rodney Fort

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siepr.bsky.social
Is #AI the century's third speculative bubble? Yes, say SIEPR's @jaredb-econ.bsky.social and @weakinstrument.bsky.social in a @nytimes.com op-ed. They lay out the reasons and examine whether the fallout could be better or worse than the internet, housing bursts. Free link 👇

tinyurl.com/nhjcm62v
Opinion | The A.I. Bubble Looks Real
The A.I. boom is likely a speculative bubble. Like the dot-com bust and the housing crisis, its pop is going to hurt.
tinyurl.com
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patrickdunleavy.bsky.social
IMF - “Excessively optimistic growth expectations about AI could be revised in light of incoming data from early adopters and could trigger a market correction…
A potential bust of the AI boom could rival the dot-com crash of 2000–01 in severity".
www.bbc.co.uk/news/article...
UK forecast to be second-fastest growing economy in G7 - IMF
The International Monetary Fund (IMF) has upgraded the rate at which the UK economy will grow this year.
www.bbc.co.uk
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