European Central Bank warns AI bubble burst could trigger systemic fallout

[pnntmp]

Whatever device you’re typing on currently was made with technology newer than Spotify. The chip inside was made on a European machine, likely from a model within the last 19 years, the processor in your phone is an ARM design likely of the last few years.

ARM is not an EU company but anyway, that's exactly what I'm talking about - there are no new ARMs, no new ASMLs .. nothing in the last decades. Whatever exists still goes by inertia, but the chances a new tech company with the size and importance of ARM or ASML to appear in the EU are zero.

 

[LordVile95]

ARM is not an EU company but anyway, that's exactly what I'm talking about - there are no new ARMs, no new ASMLs .. nothing in the last decades. Whatever exists still goes by inertia, but the chances a new tech company with the size and importance of ARM or ASML to appear in the EU are zero.

Well the report is from the ECB not the EU and the EU isn’t Europe

I don’t think you know how business works and you’ve also proven that the US isn’t going to produce one either

 

[pnntmp]

Well the report is from the ECB not the EU and the EU isn’t Europe

I don’t think you know how business works and you’ve also proven that the US isn’t going to produce one either

The ECB is a EU thing, it sets the monetary policy of the Eurozone which is a subset of EU, and has no authority outside the EU.
As for what you think, it's for your own consumption. You may look for AI assistance to improve the quality. When looking, skip Europe to save time.

 

[ActualViking]

Except those member states are still poor, the successful states are being wrung out of their resource sot prop up the failing ones, ornery regulations drive innovation or of continent and so on.

Still waiting for Florida to be underwater because of climate change BTW. 6 years late and counting, where's the water?

? Calling a country like Poland poor seems strange to me.

Here is what has happen to the economy in Poland since it joined the EU - nominal GDP surged from roughly $256 billion in 2004 to cross the historic $1 trillion milestone in 2025, reaching an estimated $1.13 trillion by 2026. Average annual growth has hovered near 3.8%, and unemployment plummeted from over 19% in 2004 to roughly 3%.

Not saying Poland is rich per se, but comparing to where it was after USSR fell apart and the Iron curtain came down it is like night and day. And it is similar stories for other countries that were doing poorly, but showed desires for democracy and was allowed to join the EU.

As for the climate change thing. It is not something that happens over night, what it is about is the rate of change being accelerated and it happening at a rate where nature can't keep up. Go look at how the frequency and severity of tropical storms as an example, or you can look into how insurance premiums for housing in Florida - those are driven by the consequences of climate change (I hear they are up by 75% or more over the last five years).

 

[subnex]

When the bubble pops, what should happen is that the EU (and rest of the world) should support citizens who are unwillingly affected. For example by their banks or pension funds investing their money in risky stocks.

What however will happen is that the big businesses will be bailed out using taxpayer money and a large number of regular citizens losing their savings or pension, while not having seen much of the gains. Just like during the GFC