[RE]

THEGUARDIAN.COM 2026-10-12

Threat of AI share crash puts world financial stability at risk, says IMF

The IMF cautions that overvalued AI firms with growing debt endanger global financial stability, as a market correction could spark widespread disruption. Excessive leverage, circular financing, retail speculation, and heavy concentration in major tech giants heighten vulnerabilities. Uncertain profitability, cybersecurity risks, and mismatched economic returns underscore the need for preparedness amid looming volatility.

Everybody Knows this, but nobody wants it to stop.  Why??  Because the only thing currently supporting the GDP of the entire OECD is the rampant speculation in AI.  NYC's entire budget is being supported by the whopping amounts of money being manufactured and spent on Wall Street.

Problem is, it will stop and then they'll say "who cooda node?" 🙄

RE

[RE]

404MEDIA.CO 2026-10-13

Character.ai's Bankruptcy Documents Show the Economics of AI Don't Work

Character.ai’s collapse highlights the vulnerability of overfunded AI companies that prioritize speculative growth over viable revenue models. Despite massive investment and high valuation, it exhausted capital, grappled with legal challenges, and never established sustainable operations. Its failure signals a turning point in the erosion of unchecked AI hype.

I wonder how big the CDS Market is on the AI Hyperscalers?  There's gotta be some Michael Burry type out there who has bet big on somebody major going Tits Up before this clusterfuck is finished.  Wouldn't it be nice if it was Google or the Big Gorilla? 😀  Then there's the question of which TBTF bank would write the CDS?    Goldman?  JP Morgan?

Somebody's gonna make a killing.  Somebody else is going to the Morgue.

RE