Bursting the AI Bubble: Fed Could Take Away the "Who Could Have Known?" Defense
The article discusses the potential role of the Federal Reserve in preventing economic bubbles, particularly in the context of the AI sector. It highlights past bubbles, such as the tech and housing bubbles, and the lack of accountability for those responsible. The author argues that the Fed could help by assessing stock market valuations against economic projections, thereby holding investment managers accountable.
- ▪The Fed has a responsibility to prevent economy-threatening bubbles.
- ▪Past bubbles have led to significant economic damage without accountability for those in charge.
- ▪The Fed could assess stock market valuations to help deflate potential bubbles.
Opening excerpt (first ~120 words) tap to expand
Bursting the AI Bubble: The Fed Could Take Away the “Who Could Have Known?” DefenseIt's the Fed's responsibility to try to prevent economy-threatening bubblesDean BakerMay 24, 2026713ShareThe collapse of both the 90s tech bubble and the 00s housing bubble had a devastating impact on the lives of tens of millions of workers. And with the collapse of the housing bubble, millions also lost their homes and their lives’ savings.When something causes so much damage, it would be nice to see the people responsible pay some price. In the case of the 1990s bubble, there were some instances of fraudulent accounting where the perps did get nailed.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at Hacker News (AI / LLM).
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