‘The AI Boom Will Pull Back, Warns Former SEC Chair Gary Gensler’, 13:18
Former SEC Chair Gary Gensler reviews why today’s AI investment boom will not continue indefinitely — expecting some form of slowdown or reversal within the next 18 to 30 months.
He discusses how it’s the AI related debt and vendor guarantees which could determine how disruptive that correction becomes. How much debt is there in the system? Who stands behind the many interconnected financial arrangements, vendor guarantees, and off balance-sheet special purpose vehicles? Who holds the debt or is relying on the guarantees?
Gensler also weighs in on the Anthropic IPO efforts, interest rates, Fed policy, financial stability, and the possibility that the U.S. has overbuilt AI infrastructure.
You can also listen to Gary & Simon discuss Fed policy in their most recent episode - Episode 35: What Will The Fed Do Next?