In-depth analysis of global financial markets, market trends, investor behavior, capital flows, economic forces, and the events shaping businesses, technology, and investing.
The AI boom is becoming a debt boom. As hyperscalers and AI infrastructure companies borrow at unprecedented scale, rising bond supply and elevated Treasury yields are increasing the cost of capital. The key question for investors: can AI generate returns high enough to justify the rising cost of financing its expansion?
Situational Awareness became one of Wall Street’s fastest-growing AI hedge funds before a leveraged portfolio unraveled. But did the AI thesis fail—or was it the financing strategy? FCJ examines the rise, the collapse, and the lessons for investors.
The South Korean market crash wasn’t just another semiconductor sell-off—it was the first major warning that investors are beginning to question the economics of the AI boom. As record profits collided with falling share prices, the episode exposed deeper concerns about AI infrastructure spending, commodity cycles, investor psychology, and whether trillions of dollars of investment can ultimately generate sustainable returns.
