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Also reported in the Guardian. https://www.theguardian.com/business/2025/oct/08/bank-of-england-warns-of-growing-risk-that-ai-bubble-could-burst https://www.th
by Delphiza 11mo ago
Also reported in the Guardian.
https://www.theguardian.com/business/2025/oct/08/bank-of-england-warns-of-growing-risk-that-ai-bubble-could-burst https://www.theguardian.com/business/2025/oct/08/bank-of-eng...
For non-brits, Bank of England the UKs central bank and is a lot like the US Fed. Their comments carry a lot of weight and do impact government policy.
Not enough central banks were making comments about the sub-prime bubble that led to the 2008 crisis. Getting warnings about a possible AI bubble by a central bank is both significant and, in performing the functions of monetary and financial stability for a country, the prudent thing to do.
- whimsicalism 11mo agoThe mistake central banks made in 2007-2009* was keeping monetary policy far too tight for far too long, for no real discernable reason. Offering commentary on which particular sectors they feel are a 'bubble' is outside their purview and not particularly productive IMO, the state is not very good at picking winners. *edited to 2007
- NewJazz 11mo agoSorry you think the government wasn't pumping the 2006 economy enough?
- whimsicalism 11mo ago2006 was too early, fair enough. But we were way too tight by late 2007 at least. We should never have let AD fall as much as it did.
- bgwalter 11mo agoI like that the Bank of England spells out the "sudden correction" this time. In 1996 Fed Chair Alan Greenspan warned about irrational exuberance, in 1999 he warned Congress about "the possibility that the recent performance of the equity markets will have difficulty in being sustained". The crash came in 2000. The warning seems to have gone unnoticed. AMD just behaves exactly like Juniper in 1999.