“The risk of a sharp market correction has increased,” said the Bank of England’s financial policy committee during a Wednesday meeting, as quoted by Reuters, warning that “equity market valuations appear stretched, particularly for technology companies focused on artificial intelligence.”
“Should expectations around the impact of AI become less optimistic,” markets could be left “particularly exposed,” the bank cautioned.
It’s far from the only entity expressing alarm about the state of the economy; analysts recently found that an AI bubble is 17 times the size of the dotcom-era bubble and four times bigger than the 2008 financial crisis.
spikey_wombat on
This shit is going to be like the accounting scandals of 2001-2002.
Ai spending reliant on debt, without much income all hidden off books using SIVs.
CampEmbarrassed170 on
The Wall Street Casino goes brrrrrrrr. Finance Bros will start shorting the market soon.
jh937hfiu3hrhv9 on
If ten percent of the population owns over ninety percent of the stock market, how does their losing stock gains crash every one else’s economy? If the nasdaq dropped 75% from the .com bubble, what does seventeen times more look like?
Sorry, not buying the drama here. for a really big crash to occur you normally need at least one of two things to occur: unprofitable startups to be massively overvalued (think [pets.com](http://pets.com) in 2000) or massive debts that cannot be repaid (think credit default swaps in 2008).
As far as I understand it, the biggest AI investments come from the likes of the Magnificent 7. If suddenly all of their lofty AI-driven valuations were to disappear overnight, I cannot foresee contagion spilling to the broader economy. Also, these villains will quickly pivot to the next craze and valuations will go back up.
5 Comments
“The risk of a sharp market correction has increased,” said the Bank of England’s financial policy committee during a Wednesday meeting, as quoted by Reuters, warning that “equity market valuations appear stretched, particularly for technology companies focused on artificial intelligence.”
“Should expectations around the impact of AI become less optimistic,” markets could be left “particularly exposed,” the bank cautioned.
It’s far from the only entity expressing alarm about the state of the economy; analysts recently found that an AI bubble is 17 times the size of the dotcom-era bubble and four times bigger than the 2008 financial crisis.
This shit is going to be like the accounting scandals of 2001-2002.
Ai spending reliant on debt, without much income all hidden off books using SIVs.
The Wall Street Casino goes brrrrrrrr. Finance Bros will start shorting the market soon.
If ten percent of the population owns over ninety percent of the stock market, how does their losing stock gains crash every one else’s economy? If the nasdaq dropped 75% from the .com bubble, what does seventeen times more look like?
>Yet according to [recent estimates](https://budgetmodel.wharton.upenn.edu/issues/2025/9/8/projected-impact-of-generative-ai-on-future-productivity-growth), generative AI now accounts for roughly 40 percent of the United States’ gross domestic product. In other words, if the AI spending boom falls apart, it [could take down the entire economy with it](https://futurism.com/future-society/entire-economy-ai-bubble).
Sorry, not buying the drama here. for a really big crash to occur you normally need at least one of two things to occur: unprofitable startups to be massively overvalued (think [pets.com](http://pets.com) in 2000) or massive debts that cannot be repaid (think credit default swaps in 2008).
As far as I understand it, the biggest AI investments come from the likes of the Magnificent 7. If suddenly all of their lofty AI-driven valuations were to disappear overnight, I cannot foresee contagion spilling to the broader economy. Also, these villains will quickly pivot to the next craze and valuations will go back up.
Just my opinion.