'Big Short' investor Steve Eisman on the AI boom, markets and private credit | 3 Pressing Questions

Steve Eisman, the investor best known for predicting the 2008 financial crisis who's also portrayed by Steve Carell in the movie "The Big Short," is our guest this week. Eisman, who now hosts the popular finance podcast "The Real Eisman Playbook," joins us to give his views on the AI boom, how the stock market has essentially become "one trade," and the trouble lurking in private credit. Plus, he shares his outlook on US stocks, interest rates, and what the much-anticipated IPOs of OpenAI and Anthropic could reveal about the future of AI. In this conversation, we dive into: 00:00: Introduction 01:27: Steve's career journey and decision to start his podcast “The Real Eisman Playbook” 02:08: Making the switch from lawyer to financial analyst 03:37: Predicting the 2008 financial crisis 05:33: The erosion of subprime mortgage lending standards - “incentives trump ethics” 06:33: Rising housing prices - “law of physics or accident of history” 07:44: The concentration risk behind the AI investment boom 11:58: Ad 14:40: The risks of an AI price war and the end of “tokenmaxxing” 16:44: What to look for in OpenAI and Anthropic IPO filings 17:56: Why Eisman sees the stock market as one big AI trade 19:56: The biggest bottlenecks to AI growth 20:59: How circular financing fuels the sector 22:31: Why it is harder to measure AI risk than subprime risk 23:26: How private equity changed the IPO market 26:06: Ad 27:27: Interest rates and the risk of a stock market correction 28:54: Why Steve no longer invests outside the US 29:52: Steve’s long-term outlook for US stocks 31:06: Risks in private credit 34:01: Comparing the '08 crisis with the private credit risk 36:50: Rapid-fire round Note: The views and opinions expressed in this episode are for informational purposes only and do not constitute financial, investment or other professional advice. Special thanks to the NYSE for hosting this recording. This episode was recorded ahead of Anthropic's S-1 filing release. This episode is brought to you by our show sponsors: Perplexity Computer — try it for free for a limited time at: http://pplx.ai/BTB Chime — sign up for 5% cash back at: https://www.chime.com/BTB FAIRE: Get 50% off your first wholesale order at https://www.faire.com/BTB (Terms may apply) Subscribe to Steve's podcast: https://www.youtube.com/@UCzQ2FFVe7m8yIgzXMZtlSjg 🚀 Season 2 of Behind the Business is here, featuring the leaders of brands including Airbnb, Rivian, NYSE, Canva, Samsung, Poppi, Peloton, Revolve, PHLUR, The Points Guy and Away. New episodes Thursdays. 👇🏼 SUBSCRIBE + FOLLOW: YouTube: https://bit.ly/YTBTB Apple Podcasts: http://bit.ly/3IFGuIA Spotify: https://bit.ly/SpotiBTB Amazon Music: http://bit.ly/4pPZZPp 🎙️ About Behind the Business Behind the Business is a Webby Award-winning, thoughtfully produced video podcast grounded in the belief that business is in fact personal. This is not a fawning interview show. We pair deep research with thorough interviews — asking the real questions and avoiding fluff, while keeping it fun! What’s the toughest day you’ve ever had at work? How'd you first get started when you had no money? Or how do you mentally prep for a big event? In each episode, guests get into it all — and connects guests with audience members who send in a question. New episodes Thursdays. About Michelle Toh Michelle is an award-winning international journalist, most recently a longtime reporter at CNN. She's covered top stories in global business, including the chip and trade wars, world-leading IPOs, the AI race in Silicon Valley and Asia, the corporate response to Russia's invasion of Ukraine, Europe's energy crisis and China's property crunch. Previously, she was with FORTUNE. She has reported for The New York Times, TIME and South China Morning Post. Instagram: / bymichelletoh TikTok: / behindthebusinessshow #Finance #Markets #WallStreet #SteveEisman #RealEismanPlaybook #FinancialCrisis #HousingCrisis #2008Crisis #AIBubble #Anthropic #OpenAI #IPO #StockMarket #MarketAnalysis #PrivateCredit #PrivateEquity #Investment #Investing #FinancialAnalyst #BusinessPodcast Learn more about your ad choices. Visit podcastchoices.com/adchoices