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ECB warns of 'bubble' in AI stocks as funds deplete cash buffers
Reuters ^ | 11/20/2024

Posted on 11/20/2024 9:04:04 AM PST by millenial4freedom

FRANKFURT, Nov 20 (Reuters) - The European Central Bank warned on Wednesday about a "bubble" in stocks related to artificial intelligence (AI), which could burst abruptly if investors' rosy expectations are not met.

The warning came as part of the ECB's twice-yearly Financial Stability Review, a laundry list of risks ranging from wars and tariffs to cracks in the plumbing of the banking system.

The central bank for the 20 countries that share the euro noted the stock market, particularly in the United States, had become increasingly dependent on a handful of companies perceived as the beneficiaries of the AI boom.

(Excerpt) Read more at reuters.com ...


TOPICS: Business/Economy; Chit/Chat; Science; Travel
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My entire 30 years of existence has been marked by some kind of bubble-de-jour, or the negative consequences from the bursting of one.

Dot com bubble when I was in kindergarten

Barney Frank's housing bubble when I was in middle school

Covid/Fed stimulus bubble when we were reprimanded for not wearing a mask while driving in our cars

AI bubble in an era in which prominent politicians think it's ok for grown men to utilize the women's restroom!

Insanity!
1 posted on 11/20/2024 9:04:04 AM PST by millenial4freedom
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To: millenial4freedom

2 posted on 11/20/2024 9:05:55 AM PST by Frank Drebin (And don't ever let me catch you guys in America!)
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To: millenial4freedom

AI is the new name for software designed with bias in mind. There is, and will continue to be, hard-core bias in any search engine or data filtration. None give the same results across the board. Discrimination is what they do. That’s it.


3 posted on 11/20/2024 9:15:18 AM PST by ComputerGuy (Heavily-medicated for your protection)
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To: millenial4freedom

Color TV bubble in 1960’s.


4 posted on 11/20/2024 9:17:33 AM PST by Bobbyvotes (Congrats to Trump/Vance tea.m. America has been saved. For a while at least. )
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To: millenial4freedom

Yes, and IF you bought when each of those stock market bubbles burst you would be very rich now.

The stock market is currently at all time highs. Every week there is someone predicting that the bubble is going to burst.
We are due for a correction. It is just a matter of when. It never goes straight up forever. You just pointed that out.

Another thing my first boss taught me was:

“Young man, you can never go broke taking a profit”

and

“Pigs get rich, hogs get slaughtered.”


5 posted on 11/20/2024 10:37:32 AM PST by woodbutcher1963
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To: millenial4freedom

The P/E ratios are high at the moment. I’d prefer a correction soon rather than a historic crash later.


6 posted on 11/20/2024 1:32:59 PM PST by ArcadeQuarters (You can't remove RINOs by voting for them!)
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