“It’ll happen slowly, and then all at once.”

That’s how Jim Morrow, founder and chief investment officer of Callodine Capital, describes the eventual – inevitable – unwinding of what he calls “the most crowded trade in history.”

Of course, he isn’t just paraphrasing Ernest Hemingway —he’s talking about the AI race, and the trillion-dollar deals so overstretched they’re better described as knots than trades. And he’s not alone in sounding alarms.

Michael Burry—the investor of Big Short fame who famously predicted the 2008 housing collapse—broke a two-year silence this week to say nearly the same thing : that Big Tech’s AI-era profits are built on “one of the most common frauds in the modern era”—stretching the depreciation schedule (some, including Burry, would say cheating the

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