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Is This A Signal? The Head Of America’s Largest Bank Warns About A Stock Market Crash As The Housing Market Implodes
Are the financial markets about to be greatly shaken? The housing market is imploding, corporate bankruptcies are surging, there are all sorts of warning signs in the employment market, and much of the population is feeling our seemingly endless cost of living crisis very keenly. But so far the stock market has seemed immune to the growing problems that are plaguing the real economy. We have witnessed an AI-driven stock market boom in recent months, and those at the top of the economic pyramid have greatly benefited.
But could this boom soon go bust? JPMorgan Chase CEO Jamie Dimon seems to think so. He just publicly admitted that he is “far more worried than others” about a stock market crash…
The chances of the US stock market crashing is far greater than many financiers believe, the head of America’s largest bank has said.
Jamie Dimon, who is the chair and chief executive of the giant Wall Street bank JPMorgan Chase, said he was “far more worried than others” about a serious market correction, which he predicted could come in the next six months to two years.
Dimon is typically very optimistic when he is speaking publicly about the financial markets.
Was this a case of him letting his guard down, or was something else going on here?
A lot of people are going to hear what Dimon has said, and they will act accordingly.
Of course I certainly agree that the stock market is primed for a crash.
This month stock prices have been the most overvalued that I have ever seen in my entire lifetime, and the Bank of England is comparing the current state of affairs to the dotcom bust…
Much of the rapid growth in the stock market in recent years has been driven by investment in AI.
On Wednesday, the Bank of England drew a comparison with the dotcom boom (and subsequent bust) of the late 1990s – and warned that the value of AI tech companies “appear stretched” with a rising risk of a “sharp correction”.
What goes up must eventually come down.
Over the past two years, the “Magnificent Seven” have seen their stock prices more than double…
The old truism that the stock market is not the economy risks underplaying how much today’s powerful investment trends could impact the prosperity and lives of the whole country.
Artificial intelligence is obviously the megatrend of the moment. Scale is everything, and the U.S. tech giants are driving the spending, while investors are scrambling to get on board an already overcrowded train.
The so-called Magnificent Seven – U.S. tech companies that now make up a record 36% of the S&P 500’s market value – have seen their stock prices more than double over the past two years, after rebounding a whopping 60% from the troughs of this year.
There has been so much hype about AI, but the truth is that this boom is not even close to sustainable.
What companies have been spending on AI vastly exceeds the revenues that AI is producing for those companies.
As a result, a colossal mountain of AI-related debt has been accumulated.
In order to make the AI boom sustainable, an additional $800,000,000,000 in AI-related revenue would be required…
The current AI boom is not sustainable, a Deutsche Bank research note warned this morning, because tech spending won’t “remain parabolic.” AI capex is now so massive it is keeping the U.S. out of recession, the bank said. Separately, Bain & Co. estimate there will be an $800 billion shortfall in the revenues needed to fund the demand for AI computing power. About half the S&P 500’s gains this year have been driven by tech stocks.
There is no way that revenue gap is going to be closed.
So this bubble is going to burst.
It is just a matter of time.
Meanwhile, the housing market continues to implode.
According to Redfin, there were 72.3 percent more condo sellers than buyers during the month of August…
There were an estimated 72.3% more condo sellers than buyers (108,945 more) nationwide in August. That marks the fifth straight month in which there have been at least 70% more condo sellers than buyers in the U.S. housing market.
That makes spring and summer 2025 the strongest buyer’s market for condo buyers in records dating back to 2013, with the exception of April 2020, when the start of the pandemic halted homebuying activity.
Condo prices have started to plummet all over the nation, and this is particularly true in the markets that were once considered to be the hottest.
At the same time, home purchase agreements are being canceled at an unprecedented rate…
Roughly 56,000 U.S. home-purchase agreements were canceled in August, equal to 15.1% of homes that went under contract that month. That’s up from 14.3% a year earlier and marks the highest August rate in records dating back to 2017.
This is based on a Redfin analysis of MLS pending-sales data. The data are seasonal, which is why we compare this August to past Augusts. Please note that homes that fell out of contract during a given month didn’t necessarily go under contract the same month. For example, a home that fell out of contract in August could have gone under contract in July.
This is exactly what we would expect to see if our housing bubble was starting to burst.
Another thing that we would expect to see is a spike in foreclosures…
Foreclosure rates have surged across the country and are up almost 20% from this time last year.
“In 2025, we’ve seen a consistent pattern of foreclosure activity trending higher, with both starts and completions posting year-over-year increases for consecutive quarters,” says Rob Barber, CEO of ATTOM, a leading curator of land, property, and real estate data.
Do you remember when millions of Americans lost their homes in 2008 and 2009?
Well, it is starting to happen again.
Sadly, the homeless population in the U.S. was already at a record level coming into this year, and it just continues to grow.
We can see signs of this all around us.
For example, it is being estimated that approximately 1,500 “mole people” now live in the tunnels underneath the Las Vegas Strip…
Tourists may have deserted the gambling capital of the world but the number of homeless has skyrocketed. Among them are the ‘Mole People’ who dwell in the decaying tunnels below the Las Vegas Strip.
A petite blonde-haired woman in a red sundress, who goes by Natasha, emerges from her home under the Sahara Hotel and Casino on a sweltering late September day.
She is just one of an estimated 1,500 people, many of whom are drug, alcohol or gambling addicts, who live underneath the glittering Strip in a vast 600-mile system of storm drain tunnels built in the early 1990s.
Even though so much has been going wrong, many have pointed to the success of the stock market as an indication that everything will be okay.
But the clock is ticking.
The AI boom will inevitably come to a dramatic end, and once that occurs our economic problems will accelerate significantly.
JPMorgan Chase CEO Jamie Dimon can see what is on the horizon, and he is sounding the alarm.
Unfortunately, most Americans just blindly trust the system, and so they will be blind-sided when it finally comes crashing down.
Michael’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.
About the Author: Michael Snyder’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com. He has also written nine other books that are available on Amazon.com including “Chaos”, “End Times”, “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, and “Living A Life That Really Matters”. When you purchase any of Michael’s books you help to support the work that he is doing. You can also get his articles by email as soon as he publishes them by subscribing to his Substack newsletter. Michael has published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and he always freely and happily allows others to republish those articles on their own websites. These are such troubled times, and people need hope. John 3:16 tells us about the hope that God has given us through Jesus Christ: “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.” If you have not already done so, we strongly urge you to invite Jesus Christ to be your Lord and Savior today.
The post Is This A Signal? The Head Of America’s Largest Bank Warns About A Stock Market Crash As The Housing Market Implodes appeared first on The Economic Collapse.
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