Feels like they expect a bailout if they fail to turn a profit.

AI’s Wobbly House of Cards Puts Markets and US Economy at Risk

(Bloomberg) — The heads of America’s leading AI development labs have started a national conversation about tapping the brakes on a technology that’s offering so much promise for society, while at the same time showing it can do a frightening amount of harm.

It’s a debate that needs to be had, and a real solution invariably will be hard to come by. But considering the trillions of dollars of investment gains and market value that have been built on the assumption that AI will keep growing at breakneck speed for years and years to come, what happens to Wall Street — and more importantly Main Street — if it doesn’t?

“People may not fully grasp just how wound up the market and the economy is in all of this,” said Jim Morrow, chief executive officer of the Boston investment firm Callodine Capital Management. “There are just so many things to unravel if it starts.”

The stakes have grown alarmingly high over the past four years as artificial intelligence became the foundation upon which the economy and stock market rest. AI-related spending accounts for about half the growth in US gross domestic product, by some estimates, rivaling the level of internet investment during the dot-com bubble.

The S&P 500 has gone nowhere for a month. It is pinned in a stalemate.

Bullish pull: strong earnings, a solid economy, valuations that are fine on 2027 numbers. Bearish pull: oil at multi-year highs, yields at multi-year highs, an unresolved war.

Support sits at 7,600 and… pic.twitter.com/liAKusv5TZ

— Kurt S. Altrichter, CRPS® (@kurtsaltrichter) September 22, 2026

Alex Karp is warning the AI bubble might collapse the entire stock market.

"When you have unlimited liability, the only way to deal with it would be go to the government, say 'We'll give you 15% of our business."

"Of-course the value of the business will collapse first… It… https://t.co/9pqtTgo4i7

— Financelot (@FinanceLancelot) September 22, 2026

Now we begin the narrative part: "The Fed prints and hence markets cannot decline"

When you meet that argument – then ask them what happened here 👇

Liquidity cannot prevent Market Crashes

It is about the Real Economy (Consumers and Housing), which Liquiditists do not… pic.twitter.com/T2UxOACbIt

— Henrik Zeberg (@HenrikZeberg) September 22, 2026