And it isn’t over yet by a long shot!

The world is paying attention as $2.5 trillion was wiped out on Wall Street today.

Wall Street Bloodbath as $2.5 Trillion Wiped Out!

Expect NVidia to lose half its market capitalization. Expect people who invested heavily in AI to be financially wiped out. Expect repackaged trash debt from AI companies to now come up as worthless after being sold to 401Ks and pension funds by big banks.

Oh, right! Where have we heard that song and dance before? If, after the DOT-COM bubble, the housing bubble, and now the AI bubble, you cannot see that big banks need to be broken up and banned from getting too large by law, then you are blind.

Pass a law limiting the largest bank size to some percentage of the FDIC rescue fund. If banks want to be bigger, they can collect more fees and increase the size of the fund. This also prevents the existence of any single bank being “too big to fail”.

This isn’t the end of AI, even if we wished it were. The deep pocket survivors will buy out anything useful from the AI companies getting wiped out. AI research will continue, unfortunately.

But this is going to cause a cascade of canceled data centers, data centers that have been built becoming empty useless ghost structures, and for computer parts and components hoarded by AI companies to suddenly flood the market in liquidation sales.

But as these companies collapse, what happens to the data you shared with them?

Too Big To Fail 3.0 : When AI Goes Bankrupt Who Keeps Our Secrets?

This crash is going to force trillions more in debt, hidden by Variable Interest Entities (VIEs) and Special Purpose Vehicles (SPVs) back onto the balance sheets of AI companies, exposing how worthless they truly are. That, in turn, will cause more of them to be wiped out. Their lack of creditworthiness is instantly exposed for all to see.

This isn’t going to be a short and sweet crash. It’s going to be months playing out, leading to Trump being damned for being at the center of it.

Democrats, you have a chance to protect the people of the United States. Don’t blow it by kissing corporate money’s ass.