Funding the Future Is the crash happening?
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Nov 19, 2025 Financial markets are in a downturn, with the S&P 500 and FTSE 100 showing troubling signs. Hype has overshadowed fundamentals, fueling a bubble that's about to burst. Analysts predict a tech decline reminiscent of 2008, and concerns grow over political leaders' abilities to manage the crisis. The population is more vulnerable than in previous downturns, raising fears of harsher outcomes. Timing is key; experts agree that a crash is imminent. The big question remains: can governments respond effectively without worsening the situation?
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Broad Market Hype Is Reversing
- Global markets show coordinated signs of reversal across stocks, gold and crypto indicating broad overvaluation.
- Richard Murphy argues recent hype (Bitcoin, AI) has driven prices beyond fundamentals and is now unwinding.
AI Funding Drives Banking Risk
- The AI boom was funded heavily by corporate debt and bank lending, increasing systemic banking exposure.
- Murphy warns default risk on that debt or leveraged equity purchases could trigger a banking crisis.
Expect A 2008-Style Spillover
- Murphy expects a 2008-style crisis with banking spillovers rather than a contained 2000-style correction.
- He cites weakened fundamentals and deeper linkages between markets and banks as the reason.