AI boom may pose more peril to US markets than meets the eye, NYT analysis warns
nordicinst · x · 2026-10-25
A New York Times/Business Times analysis compares today's AI boom with the 2007-09 global financial crisis to assess whether it could end in tears.
Citing a 2022 Journal of Finance study covering 42 countries from 1950-2016, the piece notes crises are partly predictable: when borrowing and asset prices in the same sector both grow rapidly for three years, the odds of a crisis within three years reach roughly 40%.
Data center construction is already soaking up electricity, copper and workers, while loan demand is pushing interest rates up — signals the authors say policymakers shouldn't dismiss with the excuse that bubbles are only visible in hindsight.
Related event: NYT Examines AI Boom Risks Through the Lens of the 2008 Crisis(2 posts)→
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