Nobel laureate economist Paul Krugman argues that the borrowing funding AI spending will soon run dry as lenders get 'cold feet.' Alphabet, Amazon, Meta and Microsoft borrowed $214 billion between them, up from $83 billion the previous year, according to The Economist. Citing Morgan Stanley research via the Financial Times, weekly trading in credit default swaps on bonds from AI giants averaged more than $9 billion in September, versus less than $2 billion per week in July. Krugman says lenders to AI companies are having a collective 'Wile E. Coyote moment,' the point where they look down after running off a cliff and begin to fall.
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Related tickers and likely impact
MSFT
▼ Likely negativeMicrosoft
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $3.9T |
| Close on 11/02/2026 | 507.12 |
| Change that session | -2.83% |
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 11/02/2026 | 681.09 |
| Change that session | -1.36% |
NVDA
▼ Likely negativeNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 11/02/2026 | 202.06 |
| Change that session | -1.26% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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