AI Valuations and Oil Shocks: The Next Crisis Trigger
Source: Yaschamounk
Velasco pairs geopolitical oil disruption with speculative AI asset bubbles to surface a real anxiety in elite economic circles: two distinct shock vectors—one rooted in physical scarcity, one in pure valuation detachment—colliding to destabilize markets without clear policy tools to manage either. The comparison to 1970s stagflation is structural warning, not nostalgia. Central banks facing simultaneous supply constraints and inflated asset prices have almost no good moves. The question is whether regulators monitor the AI funding environment as a systemic risk category rather than a sector trend.