Risky Moves and AI Hype May Spark a New Financial Crash

Jamie Dimon, chief executive of JPMorgan, cautioned investors that the current boom in asset prices and high borrowing could trigger a crisis reminiscent of 2008.

Key Points

• Banks are taking on risky loans amid a surge in artificial‑intelligence excitement.
• The market feels “too comfortable” with high prices and volumes, risking complacency.
• Only a handful of institutions are acting “dumbly,” though none were named; JPMorgan insists it follows strict internal rules.
• Historical tech disruptions (newspapers, utilities, phone companies) have shocked markets; AI could be the next shock.
• Investors should stay alert for credit‑cycle changes and avoid overconfidence in seemingly stable sectors.

Dimon compared today’s market to the pre‑2008 era, when soaring asset values and heavy leverage created a “rising tide” that lifted all boats. He warned that the same conditions could bring a new crisis if not managed carefully.

Investors are urged to remain vigilant and question the stability of sectors that appear safe, especially as AI continues to reshape the financial landscape.