Zoho founder Sridhar Vembu has sounded the alarm over a looming financial contagion, echoing warnings from economist Gita Gopinath that the U.S. stock market is in a “clear and massive bubble” and that a correction could trigger systemic fallout.

Vembu posted on X that the degree of leverage in the U.S. financial system is so extreme that “we cannot rule out a systemic event like the global financial crisis of 2008–09.” Advertisement

He argued gold’s rally isn’t about investment gains—it’s “insurance against systemic financial risk.” He added: “Ultimately finance is all about trust—and when debt levels reach this high, trust breaks down.”

While acknowledging AI’s potential, Vembu took a skeptical tack: “I am sure AI will work hard to repay all the debt in the system.” Yet, he also war

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