Jamie Dimon Says AI Euphoria, Record Stocks, and Banks Doing 'Dumb Things' Could Lead to Another Financial Crisis

 

# Jamie Dimon Says AI Euphoria, Record Stocks, and Banks Doing 'Dumb Things' Could Lead to Another Financial Crisis

**Published: February 24, 2026**

You know how sometimes you get that feeling in your gut that things are just... too good?

Jamie Dimon has that feeling.

The man who runs JPMorgan Chase—the biggest bank in America, the one that actually made it through 2008 without collapsing—just went public with his anxiety. And honestly? It's worth paying attention to .

In remarks to investors on Monday, Dimon laid out a warning that should make anyone with a 401(k) or a savings account sit up and take notice. He's seeing echoes of 2005, 2006, 2007. The years right before everything fell apart .

Let me break down what he said, why it matters, and what it might mean for your money.

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## The Short Version

**What Dimon said:** He's worried. Asset prices are too high. Some banks are doing "dumb things" to make money. And AI euphoria is creating a bubble that could burst in unexpected ways .

**The 2008 comparison:** "Unfortunately, we did see this in 2005 and 2006 and 2007, almost the same thing. The rising tide lifting all boats. Everyone was making a lot of money. People were leveraging to the hilt. The sky was the limit," he said .

**The AI angle:** Dimon thinks software could be the industry that blows up this cycle, the way utilities and phone companies surprised everyone in 2008 .

**What he's not saying:** He's not predicting a crisis tomorrow. He's saying the conditions are there. And his "anxiety is high" .

**The market reaction:** Banking stocks got hammered. JPMorgan itself dropped more than 4% .

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## The Man Behind the Warning

First, let's talk about who's saying this.

Jamie Dimon isn't some random talking head on CNBC. He's been running JPMorgan Chase for 20 years . He steered it through the 2008 financial crisis—actually bought up two failed competitors when everyone else was panicking . He's been named "America's Most Influential Banker" more times than I can count.

When Dimon talks about financial risk, people listen. Not because he's always right, but because he's been in the trenches longer than almost anyone.

And right now, he's seeing things that bother him.

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## What He Actually Said

Let's pull the key quotes so you can hear it in his own words.

**On the current environment:**

"I'm not assuaged by the fact that asset prices are high. In fact, I think that adds to the risk." 

**On the 2008 parallels:**

"Unfortunately, we did see this in 2005 and 2006 and 2007, almost the same thing. The rising tide lifting all boats. Everyone was making a lot of money. People were leveraging to the hilt. The sky was the limit." 

**On today's mood:**

"My own view is people getting a little comfortable that this is real, these high asset prices and high volumes, and we won't have any kind of problem, whatsoever." 

**On his own bank:**

Dimon made it clear JPMorgan is "quite cautious." He said, "we stick to our own rules" . He's not saying his bank is in trouble. He's saying some *other* banks are doing "dumb things" to boost their interest income .

**On what might break:**

"There's always a surprise in a credit cycle. This time around, it might be software, because of AI. There's moving tectonic plates underneath it, it causes the industry to be challenged." 

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## The AI Euphoria Problem

Let's talk about this AI piece, because it's the part that might feel most familiar.

You've seen the headlines. Nvidia up 800% in two years. Every tech company talking about AI agents. Billions and billions being poured into data centers and chips and models.

**The numbers are staggering.** Hyperscalers—the big cloud companies—are expected to spend about **$646 billion on AI infrastructure this year alone** . That's roughly **2% of the entire U.S. GDP** , concentrated in a handful of companies, betting on a single technology .

Dimon's point isn't that AI is bad. It's that when everyone piles into the same bet, the downside can be brutal if that bet doesn't pay off.

And here's the thing: software companies are particularly vulnerable. Their whole business model is selling licenses to humans. If AI agents can do the work of several humans, who needs those licenses? That's why software stocks have been getting hammered lately—the "SaaSpocalypse" trade, they're calling it .

Dimon sees this as exactly the kind of "surprise" that shows up in a credit cycle. Industries that seemed stable—newspapers, utilities, phone companies—suddenly weren't. This time, it might be software .

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## The "Dumb Things" Banks Are Doing

This part is classic Dimon. He didn't name names—because he's not an idiot—but he made it clear that some of his competitors are getting sloppy.

**What are these "dumb things"?** Basically, taking on risky loans to boost net interest income . When interest rates are high, there's pressure to make money. The temptation is to lend to riskier borrowers, or to loosen standards, to keep the revenue flowing.

Dimon says he's seeing that happen. And it reminds him of the years before 2008, when everyone was making loans they shouldn't have made .

**Kathleen Brooks**, research director at XTB, said Dimon's comments helped create a "narrative around credit concerns and a potential 2008 scenario forming" . That narrative hit banking stocks hard on Monday and Tuesday.

JPMorgan's own stock dropped more than 4% . Lloyds, Barclays, NatWest—all down .

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## The Private Credit Warning Sign

This is where it gets specific.

Dimon has been warning about the **private credit market** for months. In October, after subprime auto lender Tricolor and parts manufacturer First Brands filed for bankruptcy, he said something memorable: "When you see one cockroach, there are probably more" .

JPMorgan took a $170 million hit on their Tricolor loan .

Now, just last week, **Blue Owl Capital**—a major player in private credit—had to permanently shut the doors on one of their funds. They halted redemptions and started selling assets to raise cash .

That's the kind of thing that makes Dimon's antenna go up.

The private credit market is now about **$3 trillion** . That's a lot of money operating outside the traditional banking system, with less oversight, and some of it is clearly under stress .

Dimon's point: these cracks in non-bank finance, combined with the AI spending bubble, are worth watching closely.

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## Is This Really 2008 All Over Again?

Okay, let's pump the brakes for a second.

Dimon is warning about conditions that *could* lead to a crisis. He's not saying one is imminent. And there are some real differences between now and 2008.

**Table 1: Then vs. Now**

| **Factor** | **2007-2008** | **2026** |

| :--- | :--- | :--- |

| Housing market | Overvalued, subprime mess | Expensive but not collapsing |

| Bank leverage | Extremely high | More regulated |

| Derivatives | Opaque, massive | Better understood |

| Corporate defaults | Rising | Still low—4.4% in Europe  |

| Interest rates | Rising before crash | High but stable |

**Kathleen Brooks** from XTB made an important point: default rates in Europe were only 4.4% at the end of 2025, and they're expected to fall this year . There were only $3.9 billion in defaults in European high-yield debt last year, and $9 billion in leveraged loans .

"Trying to guess a credit collapse might make good headlines, but it may not become a reality, and the markets could be overreacting to what Dimon had to say," she said .

So maybe this is just a healthy dose of caution from the guy who's been through it before.

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## What the Market Did

The market didn't exactly shrug this off.

**Table 2: Market Movers (Feb 23-24, 2026)**

| **Stock/Index** | **Movement** |

| :--- | :--- |

| JPMorgan Chase | Down more than 4%  |

| Lloyds Banking Group | Down 1.72%  |

| Barclays | Lower |

| NatWest | Lower |

| Standard Chartered | Lower |

The "AI scare trade" also spread beyond banking. Insurance brokers, private credit, cybersecurity, even real estate services got caught up in the selling .

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## What This Means for You

Okay, so Jamie Dimon is worried. What do you actually do about it?

### If You're an Investor

First, don't panic. Dimon isn't saying sell everything. He's saying be careful. Be selective. Pay attention to what's happening under the surface.

If you're heavily concentrated in tech or AI stocks, maybe think about diversification. If you're in private credit funds, maybe check what they're holding.

**Dimon's own bank is "quite cautious"** . That's probably a decent approach.

### If You're a Homeowner

This doesn't directly affect your mortgage. But if Dimon is right about a potential downturn, having a stable job and manageable debt becomes even more important.

### If You're Just Trying to Save Money

Keep doing what you're doing. Emergency fund. Diversified investments. Long-term perspective. The market will go up and down. That's normal.

### If You Work in Software

This is worth paying attention to. Dimon specifically called out software as an industry that could be disrupted . If you're in a role that could be automated, now might be the time to think about upskilling or pivoting.

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## What to Watch Next

A few things to keep an eye on:

**Private credit stress.** Are more funds having redemption problems? More bankruptcies? That "one cockroach" could turn into many.

**AI earnings.** When Nvidia and others report, are they actually making money, or is it all hype?

**Bank lending standards.** If banks start tightening, that's a classic sign of trouble ahead.

**The next "surprise."** Dimon says there's always one industry that blows up. Software? Private credit? Something else? Pay attention.

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## Frequently Asked Questions

**Q: Is Jamie Dimon predicting another financial crisis?**

A: Not exactly. He's saying the conditions are similar to what he saw before 2008—high asset prices, complacency, some banks taking excessive risks . He's not predicting a crisis tomorrow, but he's worried enough to speak publicly about it.

**Q: What are the "dumb things" banks are doing?**

A: Dimon didn't specify, but he's likely referring to risky lending to boost interest income . When banks loosen standards to make more loans, it often ends badly.

**Q: How is AI a risk to the financial system?**

A: Dimon's point is that AI could disrupt entire industries—starting with software—and those disruptions could lead to loan defaults in unexpected places . If a lot of software companies suddenly can't pay their debts, that's a problem for the banks that lent to them.

**Q: Should I sell my stocks?**

A: I can't give investment advice. But Dimon himself isn't selling—JPMorgan is still in the market. The message is to be cautious and aware, not to panic.

**Q: What's happening in private credit?**

A: The $3 trillion private credit market is showing some stress. Blue Owl Capital recently had to halt redemptions on a fund . Subprime auto lender Tricolor and parts maker First Brands both filed for bankruptcy . Dimon sees these as warning signs.

**Q: How did the market react to Dimon's comments?**

A: Banking stocks sold off. JPMorgan dropped more than 4%, and European banks like Lloyds and Barclays were also down . The "AI scare trade" hit other sectors too.

**Q: Is this like 2008?**

A: In some ways, yes—Dimon sees the same "rising tide" mentality. In other ways, no—default rates are still low, and banks are better capitalized . It's a warning, not a prediction.

**Q: What should I do to prepare?**

A: The usual stuff. Diversify your investments. Keep an emergency fund. Pay attention to your industry's outlook. Don't take unnecessary risks.

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## The Bottom Line

Here's what I keep coming back to.

Jamie Dimon has been running the biggest bank in America for two decades. He's seen booms and busts. He's the guy who actually made money during the 2008 crisis while everyone else was collapsing.

When he says his "anxiety is high," it's worth listening.

But here's the thing: he's not saying the sky is falling. He's saying the sky is high, people are getting comfortable, and some folks are doing dumb things. That's not a prediction of doom. It's a warning to pay attention.

**"There will be a cycle one day,"** he said. "I don't know what confluence of events will cause that cycle."

Neither does anyone else. But if you're the type of person who pays attention to the people who've been through it before, Dimon's words are worth taking seriously.

Be cautious. Be diversified. Be aware of what's happening under the surface.

And maybe don't be one of the people doing "dumb things."

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*Got thoughts on Dimon's warning? Worried or brushing it off? Drop a comment and let me know.*