Part 9/12:
The proliferation of off-balance-sheet financing, combined with circular investments—where companies fund their own growth through complex financial arrangements—raises the risk of hidden vulnerabilities. Past instances, such as the downfall of auto lenders with fraudulent practices, underscore how opaque financing structures can conceal risks that may eventually materialize catastrophically.
Furthermore, large-scale capital expenditure (capex) in AI, totaling hundreds of billions, results in minimal revenue generation relative to investments—highlighted by the disproportionate spend versus income in these nascent sectors.