David Chisnall (*Now with 50% more sarcasm!*)@david_chisnall@infosec.exchange
When the 2008 financial crisis happened, it could have been much worse. Governments stepped in to prevent the collapse of banks spreading (Gordon Brown doesn’t get nearly enough credit for this). The biggest mistake was allowing investment bankers who had put customers’ money at risk without doing due diligence and accurately reporting risk to escape accountability.
But now think about the AI bubble. It seems very likely that the burst will happen during the Trump regime. Can you imagine Trump participating in a coordinated multinational effort? No, he’ll demand concessions from everyone in exchange for doing things he doesn’t understand primarily benefit Americans. He won’t be motivated to do anything to avoid US pension funds crashing, unless he is personally invested in them (and banks that he owes money to going bust will probably be something he sees as a net positive).
I hope other countries are starting to think about how they will firewall the US financial system to prevent contagion. I don’t know if this is even possible to any meaningful degree. With Trump in charge, I don’t see any path that doesn’t look like the Great Depression.
