@rohanpaul_ai: Bank for International Settlements (BIS) is warning that an AI-driven market selloff could quickly spill into credit, b…
Summary
The Bank for International Settlements warns that an AI-driven market selloff could quickly spill into credit, citing past stress episodes and an opaque private credit system.
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Cached at: 07/08/26, 06:27 AM
Bank for International Settlements (BIS) is warning that an AI-driven market selloff could quickly spill into credit, because stock losses and credit spreads have moved together in past stress episodes like 2008 and 2020.
Private credit has also become a bigger lender to smaller firms, and software borrowers are increasingly tied to multiple lenders, so an AI shock could spread through a less transparent credit system.
Rohan Paul (@rohanpaul_ai): Linkedin post by Yann LeCun (@ylecun ) today.
The Bank for International Settlements (BIS), commonly called “the central bank for central banks,” said in a late-June report that they were getting worried about an “AI bubble”.
(I posted about the full BIS report which you
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