Central Bankers warn AI Bubble is similiar to conditions before the Great Depression [View all]

https://www.telegraph.co.uk/business/2026/06/28/ai-boom-risks-global-financial-crash-central-bankers-warn/

The BIS, known as the bank for central banks, said there was growing “peril” in financial markets from the complex web of financial ties between AI giants, shadow banks and data centre builders unravelling.

“Financial stability could ... be at risk in the event of an AI bust,” the BIS said. “Should hyperscalers slow or halt the aggressive pace of capex deployment, many borrowers across the supply chain could struggle to replace lost revenue and service their debt.
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The BIS warning is one of the strongest yet on risks lurking in the AI boom. The Bank of England warned in December that share prices were now the “most stretched” they had been since the 2008 crisis.
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The bank noted there were parallels between the AI infrastructure surge and the dotcom boom, as well as similarities with the British railway mania of the 1840s or the “roaring 20s” before the Great Depression.