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How AI’s speculative frenzy exposes the dark side of financial markets

From wheat contracts to AI stocks, speculation now dwarfs the global economy. Are tighter rules the only way to prevent the next crash?

This is a paper. On this something is written.
This is a paper. On this something is written.

How AI’s speculative frenzy exposes the dark side of financial markets

Financial Casino: Gains for the Few, Crises for All

Above all, the AI bubble has reignited the debate about the damages that excessive speculation can cause or has caused. A philippic.

2025-12-06T02:00:00+00:00

business, casino-and-gambling, casino-games, gambling-trends

Speculative trading has long sparked controversy over its economic impact. Recent debates around the AI bubble have brought this issue back into focus. Critics argue that unchecked speculation can destabilise markets and harm real economies.

The scale of financial speculation has grown dramatically over time. In 1980, global financial assets matched the world’s GDP. Today, they exceed it by ten times. A striking example is wheat trading: in 2002, contracts worth eleven times the actual global supply were traded, surging to 73 times by 2011.

The debate over speculation continues as its effects ripple through economies. While financial markets serve useful purposes, their potential for harm grows when trading becomes detached from real-world supply and demand. Calls for tighter regulations aim to prevent further disruptions and protect vulnerable economies.

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