The AI Boom Is Hiding Something Very Ugly
The AI fragility trap
The AI boom is entering a dangerous new phase. Spending is exploding, free cash flow is collapsing and debt issuance is breaking records. Beneath the surface, credit volatility is surging, equities are becoming increasingly fragile and the flight into defensive safety is creating new pockets of excess. The AI story isn't dead, but the market is starting to question who pays the bill. And with positioning increasingly nervous, the next violent move may not be the one everybody expects.