Eichengreen: debt markets, not stocks, will drive the aftermath of the AI bubble
TobyWalsh · x · 2026-09-14
Economist Barry Eichengreen argues in Project Syndicate that just as debt markets fueled the 2007-08 subprime near-meltdown, their exposure to AI will drive what happens when the bubble bursts.
Two concrete threads: AI-related ventures are largely responsible for the rapid rise of the S&P 500, and data center investment is a major contributor to rising US interest rates as construction borrowing competes with a deficit-prone federal government. The problem, he writes, is that public information about these debt markets is very limited — and regulators are not making it any easier to obtain.
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