Just How Bad Would an AI Bubble Be?

Rates need to be higher, we are clearly in stagflation outside of AI. Once AI hype cools the stock market will correct. But we need to suck out all of the excess cash, cool consumer demand, which in turn will force businesses to lower their prices to attract customers.

I am not strictly sure why you are being downvoted, but raising interest rates does not get you out of the 'stag' in stagflation; it actually makes it worse. Cue EU governments circa 2008 for a recent example of where that kind of economic policy gets you.

when your markets are hyper monopolized they can just produce less and jack prices up even more.