Don’t expect calm after the midterms
US technology shares have been sliding again today. The drop, as the Financial Times puts it, marks "a continuation of a volatile month for the sector as investors fret about the sustainability of the debt-fueled AI infrastructure boom." Elon Musk has been raising the alarm. Alphabet (the parent company of Google) has reported some disappointing news, as have Meta and Amazon. The great fear is that all the circular financing which has sustained the AI boom – tech companies lending money to themselves through various "vehicles" – is about to be exposed, and that institutional investors (pension funds and so on) will start to panic. The trillions spent on AI data centers and computing power could start to freeze up. All eyes turn, then, toward Tuesday’s midterm elections.