@marketsbynoor: Is the AI bubble about to burst? Well Wall Street is currently paying record prices to insure the debts of Google, Amazon, Meta and Nvidia. They’re doing this through an investment vehicle called Credit Default Swaps (also the same thing used during the 2008 housing crisis). Buying a CDS does not mean the stock you own won’t go bankrupt it just means if it does don’t worry some other guy will cough up the losses you were supposed to have. Anyways reason they’ve been going crazy is because the whole AI rollout has been financed using debt and $466B worth of it. One company CoreWeave owes nearly $50B just on its own. So as Wall Street is paying record amounts of money to insure these risky loans those same companies are being bought up by the pension funds that manage your parents money… #aibubble #creditdefaultswaps #coreweave #stockmarketnews #PersonalFinance