The Wall Street Journal warns: America's "gambling addiction bubble" spans from sports to AI, and Trump is the main culprit behind it.

Senior financial journalist Ye Weijie pointed out that the United States is caught in an unprecedented nationwide speculation craze, with severe bubbles emerging in everything from sports betting to AI concepts. This article is derived from a piece authored by Wall Street Journal, organized, translated, and written by Foresight News. (Previous summary: Tom Lee: The digital asset treasury bubble may have burst, the emergence of DAT companies and NAV falling below 1 is a warning signal) (Background supplement: Japanese version of MicroStrategy Metaplanet “mNAV ratio falls below 1 for the first time”! Analyst: The bubble of digital asset treasury has burst) Recently, The Wall Street Journal published an in-depth analysis by senior financial journalist Ye Weijie, who believes that the current United States is caught in an unprecedented speculation frenzy that has far exceeded traditional financial markets. Ye Weijie pointed out that this prosperity centered around artificial intelligence seems to have similarities with several historical bubbles, such as leveraged buyouts in the 1980s and the internet bubble in the 1990s. However, this time, the situation seems somewhat different. He believes that a nationwide “gambling mentality” is permeating all aspects of the U.S. economy, politics, and even cultural psychology. The core argument of the article is very clear: the breadth and depth of this speculation craze are unprecedented. More worryingly, Washington, which should play the role of “brake,” is now “stepping on the accelerator.” Ye Weijie bluntly stated that the Federal Reserve's interest rate cut expectations, the Trump administration's relaxation of financial regulations, and even the direct involvement of the Trump family have all become catalysts for this speculation boom. This phenomenon inevitably raises the question: is this the “new normal” in market evolution, or the last revelry before a huge bubble bursts? Ye Weijie clearly leans towards the latter, warning that when everyone is immersed in the speculation game, the final outcome may be more painful than any previous bubble burst. Nationwide “betting”: an omnipresent speculation craze Ye Weijie first depicts a disturbing picture: speculation activities are no longer limited to traditional domains such as stocks, bonds, and real estate. He finds that this craze has spread to all corners of society. Cryptocurrency, once a niche concept, has now developed into a behemoth with a market capitalization of about 4 trillion dollars, attracting countless followers. Data speaks even louder. According to statistics from the American Gaming Association, last year, Americans wagered a total of 150 billion dollars on sports events, a surge of 24% compared to 2023. This is no longer an entertainment for a minority but a phenomenon of nationwide participation. Ye Weijie even mentioned that even gold, which is usually regarded as a safe-haven tool, is now showing signs of a bubble. He believes that speculation has “integrated into today's political, economic, and cultural psychology,” becoming a social norm. Washington's role: from “regulator” to “promoter” In analyzing the causes of this frenzy, Ye Weijie directly pointed the finger at Washington. He cited a key argument: “Washington officials not only did not curb this speculation but rather fueled it.” He believes that government actions are the core driving force behind this round of speculation frenzy. On the one hand, the Federal Reserve's signals of interest rate cuts have injected a large amount of cheap capital into the market; on the other hand, the Trump administration has significantly relaxed regulations across the financial system, opening the door to high-risk behaviors. A typical example is the Intercontinental Exchange (ICE), the operator of the New York Stock Exchange, which invested as much as 2 billion dollars in the prediction market platform Polymarket. Ye Weijie interpreted this deal as a “bet on the speculation industry itself.” Polymarket allows users to bet on almost any event from sports games to political elections. Although the company has not disclosed any revenue, its valuation has skyrocketed to an astonishing 8 billion dollars. This deal not only bets on the future of cryptocurrency (the platform uses cryptocurrency for transactions) but also bets that the Trump administration will take a friendlier attitude towards such businesses. Even more intriguing is that the Trump family is also behind this investment. Donald Trump Jr.'s venture capital firm is one of the investors in Polymarket, and he himself serves as an advisor. This perfectly illustrates Ye Weijie's point: politics, capital, and speculation have become tightly intertwined, forming a self-reinforcing cycle. Bubble or new normal? The alarm has been sounded So, how should we view the current situation? Is this a brand-new “new normal” that integrates speculation into daily life, or a huge financial bubble? Ye Weijie raised this question in the article and provided his judgment. He worries that this “is a bubble, the duration and universality of which will amplify the pain of its final burst.” His concerns are not unfounded. The article cites warnings from the International Monetary Fund (IMF) in its semiannual financial stability report. The IMF pointed out that “risk asset prices are far above fundamentals, increasing the possibility of disorderly adjustments… The market seems to be complacent about changes in the situation.” For an institution that is usually cautious in its wording, this is equivalent to sounding the alarm. IMF data shows that the price-to-earnings ratio of S&P 500 constituent companies has reached its highest level since 1990. Ye Weijie also listed some typical bubble behaviors: some poorly performing small companies have gone public; traditional enterprises have transformed into “cryptocurrency fund management companies” by issuing bonds and stocks to buy cryptocurrency; even among tech giants, similar “circular financing” phenomena have emerged, such as NVIDIA investing in OpenAI, OpenAI purchasing computing power from Oracle, and Oracle buying chips from NVIDIA. As Meta CEO Mark Zuckerberg admitted, he would rather “waste hundreds of billions of dollars” than “lose an edge” in the AI race. This reckless and cost-ignoring investment is a microcosm of market frenzy. Future risks and predictions Ye Weijie made predictions about future trends. He did not specify when the bubble would burst, but he hinted that when the government itself becomes a “promoter” of speculation, the fragility of the entire financial system is greatly amplified. It is like a race car without brakes, speeding madly while heading towards a cliff. He suggested that investors and policymakers must face this systemic risk. When the frenzy of sports betting, political predictions, and AI concept stocks intertwines, driven by cheap credit and relaxed regulations, the collapse of any link could trigger a chain reaction. He pointed out that the United States is in a nationwide speculation frenzy driven by political forces. This is not just a financial issue but a profound social and political problem. If this frenzy ultimately spirals out of control, its potential destructive impact will likely far exceed anyone's imagination. 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