Ambrose: This epic Wall Street boom is not over yet

november 11, 2026

Fed over-stimulated with 175 basis points of interest rate cuts in 2024 and 2025. The effects are now feeding through with the time-honoured delay.

The AI hyperscalers, and the industry of picks and shovels serving them, meet every definition of an unsustainable bubble. But whether this is the big crash we have all been waiting for is another matter.

The history of powerful technological booms suggests a torrid rebound before this cycle finally plays out.

Giant equity bubbles do not deflate under their own weight. They keep going – longer than we think possible – until the Fed kills them, deliberately or by accident.

It was how the electrification and radio boom ended in 1929 and how the telecom and internet boom ended in 2001 (after five rate rises in six months). The subprime boom was different, but ended the same way in 2008 after 13 rate rises in two years.

If and when the Fed breaks the fever – that is to say, when inflation forces Warsh to act – the shake-out is going to be painful for the global financial system.

AI industry lacks the electricity infrastructure in the US to meet the voracious demand for compute power. The US grid has had no major upgrade for half a century and is not fit for purpose. Money alone cannot overcome the global bottleneck of transformers, substations, switchgear and transmission lines.

Money is still loose and becoming looser in cyclically adjusted real terms. Warsh has yet to show that he has the mettle to defy his political patron in the White House.

I am not selling anything until he does.

Ambrose Evans-Pritchard Telegraph 10 November 2026

https://www.telegraph.co.uk/business/2026/11/10/this-epic-wall-street-boom-is-not-over-yet/