With a verbal intervention, the Fed stops the sell-off of Bitcoin and Nasdaq, but is that enough? Today things continued to go downhill for Bitcoin and Co – but then the statement from New York Fed boss Williams that there was still room for interest rate cuts. This revived hopes of interest rate cuts – and stopped the market’s decline that began yesterday. Is today’s recovery sustainable? The basic problem of the punctured AI investment bubble that led to the sell-off remains: massive loans from shadow banks for data centers, the majority of which will probably never become profitable. Even the Fed cannot solve this problem by cutting interest rates in December.
Notes from video:
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2. Big Tech Debt Avalanche: What This Means for AI Stocks
3. China shock 2.0: Europe’s economy with an expiry date
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