Economist: AI capex shifting to corporate bonds lowers bubble risk but raises crowding-out risk
soumitrashukla9 · x · 2026-10-08
Citing economist Ernie Tedeschi: AI capex is increasingly financed via interest-rate-sensitive means like corporate bonds, which simultaneously lowers the risk of an overheating "bubble" (more built-in brakes) and raises concern about investment crowding out (e.g., housing). Context: Derek Thompson's thesis of a mini-Dutch Disease from AI — AI's construction is changing the world faster than its capabilities.
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