Risky Moves and AI Hype May Spark a New Financial Crash

JPMorgan’s chief executive, Jamie Dimon, cautioned investors that the current boom in asset prices and high borrowing could trigger a crisis similar to 2008. He warned that banks taking on risky loans and the excitement around artificial intelligence are signs of a fragile system. Dimon compared today’s market to the years before 2008, when soaring asset values and heavy leverage created a “rising tide” that lifted all boats. Now, he said, people may feel too comfortable with the high prices and volumes, believing there will be no problems.He added that only a few institutions are acting “dumbly, ” though he did not name them, and assured that JPMorgan follows strict internal rules. The CEO also noted that technology disruptions have historically shocked markets, citing newspapers, utilities and phone companies as past examples. He suggested that AI could be the next industry to face unexpected challenges, shifting the financial landscape once again. Investors should stay alert for changes in credit cycles and avoid overconfidence in seemingly stable sectors.