NYT Analysis: What 2008's Crash Signals Say About AI-Boom Market Risks
nordicinst · x · 2026-10-25
New York Times economics columnist Peter Coy examines today's U.S. market risks through the lens of the 2007-09 financial crisis.
Key points:
- Financial crises are worse than ordinary recessions: credit stops flowing even to sound borrowers. The Great Depression saw 9,000 banks close and the money supply shrink by a third.
- While Alan Greenspan claimed bubbles are hard to identify in advance, a 2022 Journal of Finance study covering 42 countries from 1950-2016 found crises are partly predictable: rapid credit growth plus rapid asset-price growth in the same sector is the danger signal.
- With growing concerns that the AI boom could end badly, the piece applies a 2008-style checklist to today's markets.
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