Funding the Future A £1 trillion crash is waiting to happen
Nov 2, 2025
Global stock markets are soaring, but experts warn it’s a precarious bubble fueled by AI hype and shadow banking. When the crash happens, it could devastate pensions and wipe out vast sums from the UK market. The discussion highlights how rising valuations can lead to real economic losses and government bonds may help recovery later. The risks of leverage in speculative finance emerge as a critical concern, and a call to rebuild the system prioritizes societal benefit over mere profit. Will this crisis spark meaningful reform?
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AI Hype Inflates A Global Bubble
- Global stock markets are at record highs driven by AI and tech hype, creating a clear bubble.
- Investors chase perceived gains despite uncertain real-world AI profits and inefficient use cases.
Crash Mostly Hits Paper Value
- A stock market crash mostly destroys 'paper' value while real economy assets and jobs remain.
- Market prices disconnect from physical production, so price falls don't erase physical supply.
Protect Retirement Plans Now
- Prepare for pension impacts by reassessing retirement timing and savings exposure to equities.
- Expect defined-contribution savers near retirement to consider working longer or lowering retirement income expectations.