Bank of America: – Too late to avoid a stock market crash
It is too late to avoid a drop of at least 20 percent in the stock market as a result of AI, says Bank of America, which emphasizes that the timing is difficult.
"Bigger booms result in bigger crashes, and history suggests it is too late to avoid a collapse," the bank writes in the report, which estimates a fall of over 20 percent.
Warning from China: The robot bubble could burst.
According to Reuters, the Chinese government has identified a stark gap between investment and actual demand. While robots are frequently showcased at trade fairs, they are rarely seen in factories or homes.
The situation brings to mind China’s bike-sharing crisis that began around 2017, when millions of rental bikes were manufactured for companies like Ofo, only to end up unused and piled in scrap yards.
Should the "robot bubble" burst, billions in investments could vanish overnight and many companies would likely collapse.