Former U.S. Labor Secretary Robert Reich joined the chorus of economists, bankers, and traders, warning against the forthcoming bursting of the financial bubble, in an article posted on his Substack. Reich highlighted two bubbles, which he accurately says are on the verge of exploding: The AI bubble and the crypto bubble (the latter might have already exploded, he wrote, referring to the Oct. 10-11 crash).
“Shares of stock surrounding AI and its data centers account for an estimated 75% of the returns to America’s biggest corporations, 80% of earnings growth, and 90% of the growth in capital expenditures. Yet, according to an MIT report, 95% of companies that try AI aren’t making any money from it.”
