4 ms·
>Garran then calculates the Wicksellian deficit, which to be clear includes not only artificial-intelligence spending but also housing and office real estate, N
by caminanteblanco 1y ago
>Garran then calculates the Wicksellian deficit, which to be clear includes not only artificial-intelligence spending but also housing and office real estate, NFTs and venture capital...think of it as the misallocated portion of gross domestic product fueled by artificially low interest rates
In other words, this is a statement on current US interest rates, not AI. The analyst just chose to single out the AI industry because they believe it has no ability to return on investment. But the actual numbers are not AI-specific.
- Fade_Dance 1y agoI don't understand these claims from an interest rate perspective either. 2022 was a huge unwind of the interest rate bubble, and a mass extinction of ZIRP-driven business models (including the state of banking itself to an extent, which necessitated a Fed intervention). And remember, the 2022 duration bubble unwind came immediately after the DotCom Bubble 2.0, with ten billion dollar treadmill/space tourism/vaporware EV/dog walking companies. Yet it doesn't show on the chart of misallocated capital. There was a huge amount of misallocated capital destroyed then: https://images.squarespace-cdn.com/content/v1/5f3bf522f05eaf6f9effd5fe/f2590dfc-181c-4bce-8ee4-d5591ae9daed/Picture1.png?format=2500w https://images.squarespace-cdn.com/content/v1/5f3bf522f05eaf... Maybe it would make more sense with the full context of the original report.