ECB warns of 'bubble' in AI stocks as funds deplete cash buffers

FRANKFURT, Nov 20 (Reuters) - The European Central Bank warned on Wednesday about a "bubble" in stocks related to artificial intelligence (AI), which could burst abruptly if investors' rosy expectations are not met.

The warning came as part of the ECB's twice-yearly Financial Stability Review, a laundry list of risks ranging from wars and tariffs to cracks in the plumbing of the banking system.

The central bank for the 20 countries that share the euro noted the stock market, particularly in the United States, had become increasingly dependent on a handful of companies perceived as the beneficiaries of the AI boom.

My entire 30 years of existence has been marked by some kind of bubble-de-jour, or the negative consequences from the bursting of one.

Dot com bubble when I was in kindergarten

Barney Frank's housing bubble when I was in middle school

Covid/Fed stimulus bubble when we were reprimanded for not wearing a mask while driving in our cars

AI bubble in an era in which prominent politicians think it's ok for grown men to utilize the women's restroom!

Insanity!