Name: The AI Collapse Is MUCH Worse Than You Think
Uploaded: 2026-02-28T21:32:23.000Z
Duration: 15 min 25 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

And if you have any money in the markets whatsoever, you're going to want to hear this.

Apparently the stock market is going to peak in October of 2026, and

then shortly after that, we're going to see a 40% decline.

Trillions of wealth is going to be wiped out in less than two years, and

all of those safe mortgages will finally start falling into foreclosure.

Well, Citrini research just revealed what they believe is a realistic warning for our economy over these next few years.

Not just because it sounds dramatic, but because the logic is incredibly convincing.

That's why we need to talk about exactly what's happening, why some of the smartest people in the world believe that this has already begun to play out, how you could prepare today, and

whether or not this is something to be worried about.

Because I gotta say, the real risk isn't the market crash we see coming.

It's that pressure builds quietly beneath the surface that nobody realizes until eventually something.

Although, before we start, if you appreciate videos like this, where I've spent the entire day reading through dozens of articles like this, it would mean the world to me if you hit the like button or subscribed, if you haven't done that already.

Yes, this is probably my 900th time asking, and I am tired of it too.

But it does continue to help out the YouTube algorithm.

And as a thank you for doing that, as promised, here's a picture of an ant.

So thanks so much, and also a big thank you to Gemini for sponsoring this video.

All right, so to bring you up to speed, all of this starts with the most controversial article that I have ever discussed, appropriately titled the 2028 Global Intelligence Crisis.

So far, AI has helped push the stock market higher.

Without it, we might already be in a recession.

And it's been one of the biggest drivers of growth across the entire economy.

What if it's all smoke and mirrors, designed to look good on paper while quietly extracting the wealth of everyday Americans?

Well, that's the entire theory behind this paper, and it's quite interesting.

The theory is that AI continues getting insanely good and extremely proficient.

All of a sudden, companies use it to replace their white collar workers like consultants, financial analysts, software engineers, the people who make up 50% of US employment and drive about 75% of all discretionary spending.

Well, those workers lose their jobs or see massive pay cuts.

They stop spending money, businesses see revenue decline.

This causes companies to invest even more in AI to cut their costs further.

More layoffs, repeat, we see less spending from workers and then it just spirals.

So in terms of how this plays out and whether or not this could actually happen in the next few years, Citrini breaks it down into five phases, with the first being the software collapse.

At this point, AI coding gets so incredibly good that a single developer could replicate a mid market SaaS product in weeks.

So A, when a business is renewing a $500,000 annual software package, they'll start to ask themselves, what if we just built this ourselves to save the money?

This is going to start becoming even more apparent when we see phase two, Zero friction.

Pretty soon AI agents will be able to handle everything.

I'm talking shopping, insurance renewals, travel booking, tax prep, financial advice, even real estate transactions.

From that point onwards, commissions will be reduced from 2 1/2% down to under 1%.

And and agents will start routing payments through stablecoins instead of credit cards.

After all, why would a machine pay a 2 to 3% interchange fee when they could settle the transaction in seconds for a fraction of a penny?

This leads to phase three, the doom spiral.

This, unfortunately, according to them, is where things get really ugly.

Because displaced white collar workers don't just disappear.

Instead, the Salesforce manager making $180,000 loses his job and starts working for Uber at $45,000.

From there, multiply that by hundreds of thousands of workers and all of a sudden you have a flood of highly qualified people entering the jobs market, competing with one another, pushing down wages for everybody.

Like keep in mind the top 10% of earners drive more than 50% of all consumer spending in the US.

So when those people lose their jobs or see a 50% haircut in income, spending drops dramatically.

That's why in Q2 of 2027, in this scenario, we are in a full blown recession.

And this means we'll see phase four, a private credit collapse.

Now for anyone who's not been following this, more than two and a half trillion dollars has been invested in software priced at valuations that assume that revenue never goes down.

It was taken private for $10.2 billion backed by a $5 billion loan.

However, once AI started replicating customer service without any humans, there's their entire business model started becoming obsolete.

These companies didn't raise money from private investors.

Instead, they bought life insurance companies to fund their deals.

So this impacts everyday retirement accounts, annuities, pensions, you name it, all wrapped their money into these deals that are now under pressure.

And if that continues and worsens, we'll finally see phase five.

The the fact is, when white collar workers see a reduction of income or lose their job, they scale back.

everyone has to sell at the exact same time, home prices begin to fall.

If they owe more on the home than what the home is worth, they end up going into foreclosure if they're not able to bridge the gap.

And if that sounds crazy, here's a line that really stuck out to me.

The world just changed after the loans were written.

Anyway, this scenario ends with the S&P 500 falling 38% to roughly 3,500, a level that we've not seen since before ChatGPT launched.

And the scariest part is that some of the world's smartest people already believe that some of this has begun to happen today.

So in terms of what this means for you and how this might realistically play out, here's what you came for.

Although before we go into that, I gotta say it's worth zooming out and taking a look at what's happening throughout the markets.

Because nothing moves in a straight line anymore.

On top of that, your cash is losing purchasing power, prices are going up, and

if you don't take steps to get ahead of this, you're going to fall behind.

That's why I think everyone should at least be trying to optimize their everyday spending without changing their lifestyle or trying to outsmart the market.

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Again, that is gemini.com Graham with the link down below.

All right, now before we go over the counter arguments to this entire doomsday scenario and what you could do about it, I want to be fair because there are real data points today that suggest that all of this could actually be happening.

For example, the CEO of Anthropic just went on record as saying that AI could wipe out nearly half of all entry level white collar jobs.

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The AI Collapse Is MUCH Worse Than You Think

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