scripod.com

So are we in an AI bubble? Here are clues to look for.

Planet Money

5 DAYS AGO
Planet Money

Planet Money

5 DAYS AGO

Shownote

Are we in an AI bubble? That’s the $35 trillion dollar question right now as the stock market soars higher and higher. The problem is that bubbles are famously hard to spot. But some economists say they may have found some telltale clues. On our latest: ...

Highlights

The rapid rise of AI has sent stock valuations soaring, sparking intense debate over whether we're witnessing the inflation of a massive economic bubble. With trillions in market value tied to uncertain technological outcomes, economists are grappling with an age-old challenge: how to identify a bubble before it bursts — and whether doing so is even possible.
05:55
NVIDIA's valuation hinges on uncertain AI chip demand and future performance.
08:41
High valuations, volatility, issuance, and acceleration are key bubble indicators.
14:13
Bubbles were not considered a serious issue by macroeconomists in the 1990s, especially in developed economies like the U.S.
22:43
Some bubbles can lead to beneficial overinvestment in technology and infrastructure.

Chapters

Is the AI boom too good to be true?
00:00
What do past bubbles tell us about today’s market?
08:41
Should governments stop bubbles before they burst?
14:13
What happens if the AI bubble pops?
20:05
Could a bubble actually be good for the economy?
22:43

Transcript

Speaker 4: This message comes from NPR sponsor Capella University. With Capella's FlexPath learning format, you can set your own deadlines and learn on your schedule. A different future is closer than you think with Capella University. Learn more at capell...