The Meb Faber Show · Monday, August 31, 2026
Paul Kedrosky describes the current AI moment as the first bubble in history to combine all the typical ingredients of a bubble: loose credit, a compelling technology story, a real estate component, and a policy angle. He contrasts this with historical bubbles like railroads and canals.
“If you take that back to the bubble and there's a policy angle. This to my way of thinking, this moment is the first one that sits at the intersection of all of the forces that created the largest bubbles in US history.”
“And that's what makes it distinct, unusual and makes the scale really difficult for people to understand because they approach it through the lens of credit, or they approach it through the lens of real estate, or the geeks on X approach it through the lens of five prompts that will change your life, or whatever the case may be.”