AI boom poses financial risks

The article warns that the rapidly growing AI sector has created a speculative bubble of historic proportions, with tech giants accumulating over $3 trillion in debt and large investments in AI infrastructure. Experts caution that if the bubble bursts, it could trigger a financial crisis similar to the 2008 meltdown, as risky debt is increasingly embedded in financial markets. Regulators are criticized for loosening safeguards, and policymakers are urged to increase oversight, transparency, and risk management to prevent economic turmoil, while Congress and states should oppose bailouts and prioritize protecting workers and the broader economy.

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