Earlier this week, the European Central Bank issued a dire warning, warning that a “market correction” following years of AI hype and massive spending could be nigh — a crash that could have enormous international consequences.
It joined a growing chorus of analysts warning of urgent signs of an impending market collapse, a sobering possibility for the US economy that’s grown incredibly overleveraged on AI. Investors are paying orders of magnitude more for every dollar of average annual profits, indicating that something is seriously amiss.
In a Substack post earlier this week, first spotted by Business Insider, financial crisis expert and University of Helsinki economics professor Tuomas Malinen cautioned that “we need to acknowledge that the bottom can fall beneath the US economy, practically, in any minute.”
He pointed out two significant indicators in financial markets. First, corporate bankruptcies are on the rise. According to the US Courts office, the US recorded over 600,000 new bankruptcy filings between June 2025 and June 2026, an increase of 12 percent over the preceding 12 months and the highest since the COVID-19 pandemic.
