25th May 2026
Oil prices are under threat. Food supplies are becoming more fragile. Critical raw materials are under strain. The risk of a major economic shock is growing by the day.
Yet stock markets remain close to record highs.
Why?
In this video, I explore the strange disconnect between financial markets and economic reality. The FTSE 100 and S&P 500 continue to rise despite mounting geopolitical risks, growing pressure on energy supplies, concerns about fertiliser production, and warnings that supply chains could be seriously disrupted.
I suggest there are three reasons why this is happening.
First, pension funds and life assurance companies continue to pour money into stock markets because that is what they have been trained to do. Institutional habits create a constant flow of money into shares, regardless of whether those shares are realistically valued. There will be a heavy price to pay for this.
Second, markets are behaving irrationally. We have seen this before. The dotcom bubble and the financial crisis of 2008 both followed periods when investors convinced themselves that prices could only ever rise. Today, AI speculation appears to be creating a similar mood of market exuberance.
Third, the ultra-wealthy live in a world detached from everyday experience. Rising food prices, energy bills and housing costs do not affect them in the same way that they affect most people. As long as asset prices keep rising, they have little reason to question what is happening.
I also discuss the growing risks hidden within the shadow banking system, the lessons we should have learned from 2008, and why governments should already be preparing for the possibility of another financial crisis.
Most importantly, I ask what should happen if another bailout becomes necessary. Should taxpayers once again rescue private institutions with nothing in return? Or should public support come with public ownership?
The wealthy may still be celebrating, but every financial party eventually ends. The real question is who controls what happens when it does.
00:00 — Introduction: why are the wealthy still partying?
00:45 — Stock markets near record highs despite looming crisis
01:30 — Oil, gas, fertiliser, and food supply risks
02:15 — Why markets are ignoring real-world economic danger
03:00 — Institutional investors and automatic stock market buying
03:45 — Pension funds, life insurers, and “institutional habit”
04:30 — Irrational exuberance and lessons from past crashes
05:15 — AI hype, speculation, and bubble psychology
06:00 — The ultra-wealthy and detachment from everyday reality
06:45 — Shadow banking, leveraged speculation, and systemic risk
07:30 — 2008, bank bailouts, and austerity lessons
08:15 — Protecting savings, pensions, and preparing for crisis
08:50 — Conclusion: who controls the aftermath of the next crash?