16 SEP 2026.
There is growing concern that the artificial intelligence boom may be entering dangerous territory. Economists at Capital Economics are warning that many of the classic signs of a late-stage financial bubble are now flashing at once. Stock market valuations are increasingly concentrated in a relatively small group of enormous technology companies. Corporations are borrowing and issuing equity aggressively to finance massive AI infrastructure projects. Expectations for future earnings are extraordinarily high. The uncomfortable comparison is the dot-com boom, when investors correctly recognized that the internet would transform the world but still managed to wildly overpay for the companies promising to deliver that transformation.
That distinction matters. Artificial intelligence can be revolutionary and still produce a spectacular investment bubble. Railroads changed America. The internet changed civilization. Neither technological revolution prevented investors from losing fortunes when enthusiasm outran economic reality.
The enormous sums being poured into data centers, chips, power generation and AI development now require enormous future profits to justify today’s valuations. If those profits arrive more slowly than expected, or if companies discover that AI services cannot produce enough revenue to cover their extraordinary infrastructure costs, markets could suddenly begin questioning assumptions that currently appear almost unquestionable.
The Federal Reserve adds another complication. Higher interest rates make borrowing more expensive and traditionally cool speculative investment. Yet AI spending has become so strategically important that technology companies may continue spending regardless, potentially creating an unusual situation where monetary tightening slows the ordinary economy while the AI arms race continues almost untouched.
The real warning is not that artificial intelligence is fake. Quite the opposite. The technology may be enormously important. The warning is that investors sometimes confuse an important technology with an unlimited investment opportunity. History repeatedly demonstrates that revolutionary technology, extravagant expectations and cheap capital can produce extraordinary booms. It also demonstrates what happens when reality finally sends the bill.
Economists Concerned the AI Bubble Is About to Blow
The warning lights on the economic dashboard are screaming as the Federal Reserve weighs whether or not to hit the emergency brake.
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Toy Factory Project turns the Marshall Tucker Band classic “Can’t You See” into a roaring celebration at the 2025 Telluride Bluegrass Festival. Led by original MTB drummer Paul T. Riddle, the all-star lineup includes Marcus King, Oteil Burbridge, Charlie Starr, Josh Shilling and Billy Contreras. King’s gritty, soulful vocal gives the song enormous weight while the guitars, fiddle and Hammond organ stretch its Southern rock roots beautifully. Best of all, the young crowd knows every word. Timeless music, gloriously alive.
Can’t You See – Toy Factory Project Live at Telluride Bluegrass Festival 2025
A timeless Southern rock anthem meets a new generation as Toy Factory Project delivers a live performance of “Can’t You See” at the Telluride Bluegrass Festival. When the chorus hits, a crowd of younger fans sings every word at the top of their lungs-proof that great songs don’t belong to one era, they belong to everyone.
