AI Boom: Excessive CapEx and a Likely Crash

William Green chats with Jim Grant, famed editor of Grant’s Interest Rate Observer. Here, Jim warns that a major market top is forming as exuberance inflates stocks, Bitcoin, and gold. He says it echoes past bubbles and urges extreme caution.

IN THIS EPISODE YOU’LL LEARN:

00:00:00 Intro

00:10:40 Why Jim Grant is fiercely skeptical about Bitcoin.

00:19:25 Why you should be wary of all the hype about Private Equity.

00:35:50 Why Jim expects the AI boom to end in “a panic & a crash.”

00:44:13 Why even the shrewdest speculators never know when it’s time to sell.

00:49:50 What the Federal Reserve is likely to do with interest rates.

00:57:53 Why the dollar seems poised to continue losing value.

01:04:28 Why inflation will persist, fueled by perennial flaws in human nature.

01:09:50 Why Jim loves gold but is starting to worry about its meteoric rise.

01:19:01 Why he owns some bonds, despite his grim prognosis for this asset class.

01:23:39 How bull markets attract sleazy salesmen & bear markets clear them away.

01:25:56 What inspired him to write a new book about two 18th-century heroes.

01:59:34 How studying history helps him appreciate some benefits of modern life.

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

• Join the exclusive ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠TIP Mastermind Community⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
• Inquire about William Green’s ⁠⁠Richer, Wiser, Happier Masterclass⁠⁠.
• Jim Grant’s website for Grant’s Interest Rate Observer.
• Subscribe to Almost Daily Grant’s, a free (almost) daily commentary on financial markets.
• Check out Grant’s Current Yield Podcast, which is co-hosted by Jim & his colleague Evan Lorenz.
• Emanuel Derman's book, My Life as a Quant.
• James Grant's book, Bernard M. Baruch: The Adventures of a Wall Street Legend.
• Jim Grant's book, Friends until the End.
• William Green’s book, “Richer, Wiser, Happier” – ⁠⁠⁠⁠⁠read the reviews of this book⁠⁠⁠⁠⁠.
• Follow William Green on ⁠⁠⁠⁠⁠⁠⁠X⁠⁠⁠⁠⁠⁠⁠.
• Related ⁠⁠⁠⁠⁠books⁠⁠⁠⁠⁠ mentioned in the podcast.
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