According to BeInCrypto, Ed Yardeni says the AI bubble is deflating without a sudden burst. He notes that bond markets are rationing capital toward borrowers linked to weaker AI projects.
The statement reflects Yardeni’s view that pressure is reducing in the AI space not through an abrupt failure but through gradual withdrawal of excess liquidity. Bond markets, according to the source, are responding by allocating available capital more selectively, favoring lower-risk or less speculative AI borrowers.
No timeline or specific metric is provided for the deflation process. The description emphasizes a difference between “deflating” and “bursting,” indicating a slower easing of enthusiasm rather than a sharp market correction. Bond market behavior is framed as a reactive adjustment to borrower strength rather than primary cause of the change.
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