The Economist just flagged something most people are ignoring: AI debt is piling up fast.

Here's the problem — if AI companies keep borrowing heavily but the pool of available capital doesn't grow at the same pace, rates stay elevated. That's not just a tech issue.

Higher rates for longer mean rate-sensitive sectors — think housing, autos, small business lending — get squeezed out. Capital flows where the hype is, and right now that's AI infrastructure.

This is classic crowding out. The AI boom might be real, but if it's funded by debt in a tight money environment, something else has to give. Watch the sectors that can't compete for expensive capital. They'll feel it first.