The Bull Case for Bubbles: How Speculation Drives Innovation
Financial bubbles are often viewed as harbingers of ruin, but history suggests they can also catalyze transformative progress. Byrne Hobart's thesis in 'Boom: Bubbles and the End of Stagnation' posits that speculative manias—from railroads to fiber-optic networks—align capital and ambition in ways that defy pre-existing limitations.
The current AI investment frenzy mirrors this dynamic. While synchronized market movements risk abrupt corrections, they also concentrate resources toward breakthroughs. The internet's infrastructure itself was born from the wreckage of the dot-com bubble—a pattern that may repeat as AI attracts feverish funding.
'A world without bubbles is a world defined by pre-existing limitations,' Hobart observes. This paradox underscores why today's AI Gold rush could leave behind more than just financial scars.
