The ECB Published a Blog Post Arguing an AI Stock Correction Is 'Likely' — and Puts Euro-Area Household Exposure to US Tech at €440 Billion

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On August 17 the European Central Bank published 'The AI boom: rational enthusiasm or the next dot-com bubble?', concluding that 'economic research on past technological revolutions points to a worrisome conclusion: a correction of current stock market valuations is likely.' The post's distinctive argument is that the correction can happen even if AI succeeds technologically, and it quantifies the spillover channel at roughly €440 billion of euro-area household exposure to Magnificent Seven equities. It also warns that fiscal and monetary buffers are thin enough to limit any policy response — notable as a central-bank institutional signal rather than a sell-side call.