Group 1 - The U.S. government is heavily betting on artificial intelligence (AI) to improve productivity, with concerns that failure to deliver could lead to a sovereign debt crisis worse than that of 2008 [1][2] - Eric Peters from One River Asset Management warns that if the AI revolution does not yield substantial non-inflationary growth, the U.S. could face deep recession and significant budget deficits, triggering a debt sustainability crisis [1][2] - Peters highlights that the current economic interventions have shifted risks from individuals and businesses to government balance sheets, leading to accumulated consequences that could result in a sovereign crisis similar to Sweden's in 1992 [2][3] Group 2 - Peters defines a sovereign debt crisis as the most devastating type of financial disaster, as it affects the last buyer—governments—when they encounter issues [3] - He notes that the risks associated with AI not fulfilling its promises extend beyond the tech sector, potentially leading to a deep recession and large-scale budget deficits, making the 2008 financial crisis seem minor in comparison [3] - Despite the risks, Peters advises investors to remain bullish in the current market while also allocating significant downward hedges to mitigate potential losses [3]