A warning that today's AI boom looks like a classic financial bubble, which would be bad news for investors and the wider economy if it pops.

• Prices are soaring as people bet big on new AI technology and lose sight of whether it's worth the price.
• Bubbles form when a revolutionary technology arrives, people pile in, and many borrow money to bet on it.
• The same thing happened with the dot-com crash in 2000 and the 1929 crash that led to the Great Depression.
• Paper wealth isn't real money — you have to sell to cash out, and everyone tries to sell at once when it turns.
• Rising interest rates or higher taxes can prick the bubble, forcing people to pay debts, sell assets, and spend less, which drags down everyone else's income.

Outlook: If the AI bubble pops, expect falling asset prices, forced selling, and a pullback in spending that hits ordinary people, not just investors.