Organized Money The AI Bubble: More Subprime Than Dot Com
Oct 14, 2025
Herb Greenberg, a seasoned financial journalist and author of Herb Greenberg's Red Flag Alerts, dives into the intriguing world of AI investment. He discusses the explosive spending by major tech firms and likens it to past financial bubbles. Herb explains the mechanics of vendor financing and the risks posed by private credit players. He highlights CoreWeave as a case study for systemic dangers and warns of parallels to the 2008 housing crisis. The conversation also touches on geopolitical risks and the challenge of regulating this burgeoning market.
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AI Investment Is Powering The Economy
- AI build-out is driving a disproportionate share of current US market gains and GDP growth.
- That concentration makes the economy highly dependent on a few mega-cap tech players.
Market Behavior, Not Tech, Reveals Bubbles
- A bubble shows itself in market behavior, not just technology validity.
- Herb Greenberg flags unusual breadth and stocks moving wildly as signs it's "not normal."
Dot‑Com Telecom Parallels
- Herb compares today's AI build-out to the 1990s telecom fiber boom and its aftermath.
- He notes parts of the build will last while other elements risk becoming obsolete.
