Carson Block, one of the world’s best-known short sellers, has said that AI could trigger a stock market upheaval on a scale bigger than the 2008-09 global financial crisis, reopening opportunities for investors who bet against US stocks after years of slim pickings.
The founder of investment firm Muddy Waters told the FT that the rapid adoption of artificial intelligence would cause far-reaching economic and market disruption over the next few years, as job market dislocation feeds through to government finances and financial stability.
“Over the medium term, there’s going to be severe economic consequences, market consequences, government financial issues that I think make the GFC pale in comparison,” Block said.