@edzitron.com tells the story of the AI doom loop - how AI companies are digging themselves into debt as prices for GPU’s increase and data centers aren’t able to be completed.
@ceprdc.bsky.socialCenter for Economic and Policy Research
@ceprdc.bsky.social
The Center for Economic and Policy Research promotes democratic debate on the most important economic and social issues that affect people's lives.
@ceprdc.bsky.social
@enchantedhickie.bsky.socialReposted by @ceprdc.bsky.social👌Fascinating conversation on the growth of AI on Mostly Economics Podcast with guest Ed Zitron
host @deanbaker13.bsky.social
thanks @ceprdc.bsky.social
#AI #Anthropic #debt #bubble #Oracle #WallStreet
@ceprdc.bsky.socialPrivate Equity doesn’t hold for the long term posing a major problem. As @helaineolen.bsky.social explains, they purchased companies post pandemic when they were experiencing unprecedented booms, but now they can’t find any buyers.
@ceprdc.bsky.socialReposted by @ceprdc.bsky.social$413 billion of Anthropics compute agreements are non-cancellable, and OpenAI has billions more to pay to Google, Microsoft, and Amazon. @edzitron.com asks how they are possibly going to pay this money back?
@ceprdc.bsky.social$413 billion of Anthropics compute agreements are non-cancellable, and OpenAI has billions more to pay to Google, Microsoft, and Amazon. @edzitron.com asks how they are possibly going to pay this money back?
@ceprdc.bsky.socialMortgage rates are now hitting century highs, another horrible milestone from the Trump administration. This has led to a 15% decrease in mortgages and especially hurts younger households more, with those under 35 falling 35.2% #econsky
@ceprdc.bsky.socialNEW #MostlyEconomics: Renowned AI critic @edzitron.com is back talking with CEPR's @deanbaker13.bsky.social about who will pay when the #AIbubble pops. They dig into Amazon's multibillion dollar AI chip scheme, Oracle’s debt & Nvidia's stockpiles of unused chips. #econsky
@demandprogress.bsky.socialReposted by @ceprdc.bsky.socialWant to work in Congress or federal agencies?
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@ceprdc.bsky.social@ceprdc.bsky.social#AIBubble UPDATE: Amazon is selling $8B in chips to a new investment vehicle and leasing them right back. It's like a loan dressed up as a sale so it never appears as debt. Reminder: the closer the housing bubble got to collapse, the stranger the financing became too.
@ceprdc.bsky.socialNEW: The #StopWallStreetLootingAct has been reintroduced to weaken #privateequity's grip on the US economy. The bill would limit access to public funds, make them responsible for the debt they pile onto companies. It also prohibits use of REITs in our healthcare. More:
@deanbaker13.bsky.socialReposted by @ceprdc.bsky.socialTrump raised Medicare premiums by $200 www.cms.gov/newsroom/fac... so that he would have money to send seniors a $100 election bribe www.newsweek.com/trump-announ... It's very MAGA!
@ceprdc.bsky.socialConstruction and manufacturing post modest gains after a few bad months, and healthcare/social assistance continues to lead job growth. There is no evidence for an A.I. productivity boom.
Read more from @deanbaker13.bsky.social #econsky: tinyurl.com/48a4tn7m
@ceprdc.bsky.social2/3: Wage growth continues to stall as workers feel uncomfortable seeking new employment with unemployment due to quits falling to 10.5% At the same time, Trump’s deportation policy isn’t working in its efforts to increase employment for native born workers, as it’s fallen 0.7%.
@ceprdc.bsky.social#JobsDay 🧵: September's job numbers just dropped, and tells us a bad overall picture: our labor market is weaker than 4.2% unemployment suggests.
Our labor market is facing some extreme challenges, such as the fact that men continue to fall behind women in employment growth, as seen on the graph.
@ceprdc.bsky.socialNEW EP: #MostlyEconomics host @deanbaker13.bsky.social speaks with @helaineolen.bsky.social of @econliberties.bsky.social about what it could mean for your retirement savings if the #aibubble bursts. #mustlisten #podcast #econsky
@ceprdc.bsky.socialSeptember's #jobday data are about to drop. Here's what you need to know
Wage growth is weak, inflation is high.
Job growth will slow as healthcare will account for most of it.
Prime age employment among men has fallen.
Read @deanbaker13.bsky.social #econsky:
@ceprdc.bsky.social🇧🇷 Em português:
@ceprdc.bsky.socialBrazilians' living standards improved under Lula's third term, but high Central Bank interest rates limited the reach of those gains and hurt public finances, a new paper by Jake Johnston, Paola Jaimes, and Ivana Vasic-Lalovic finds ahead of the Oct. 4 elections.
@ceprdc.bsky.social#AFGHANISTAN: Afghanistan offers Washington access to minerals in return for sanctions relief #SYRIA: President al-Sharaa touts new era for Syria following lifting of terror designation