"Stock Market is Broken… Similar to Right Before the Great Depression" Eerie Warning

Warnings are mounting that the stock market has transformed into a giant "casino."

Bill Ackman, head of Pershing Square and often called the "Little Buffett," recently stated in an interview with U.S. broadcaster CNBC, "With excessive leverage and speculative trading, every few days I feel like the market is broken," strongly criticizing that "stocks are trading at incomprehensible prices."

Ackman pointed out that "the market has returned to a casino-like state from the days when extreme leverage reaching 95% was applied," noting that such short-term betting and volatility can be a buying opportunity for long-term investors at low prices, but pose a serious threat to society as a whole and the economy.

He is not the only hedge fund titan issuing warnings.

Elliott Investment Management, which manages $80 billion in assets, also stated in a letter to investors last month (October 2026) that "almost every warning bell signaling the arrival of a bear market is ringing," comparing the current stock market situation to the "Roaring Twenties" just before the Great Depression of the 1930s.

Elliott specifically warned that FOMO (Fear of Missing Out), driven by the fear of missing out on profits, could instantly transform into FOGO (Fear of Getting Obliterated), the fear of seeing one's account completely wiped out.

With circular investments by artificial intelligence (AI) companies and debt-dependent capital expenditures inflating a bubble, the analysis suggests that if expectations for AI profitability or infrastructure buildup weaken, it could trigger one of the harshest market shocks in decades.

As Wall Street veteran investors ring alarm bells one after another, caution regarding the uncertainty of the overheated stock market continues to grow.

Reported by Lee Hyeon-yeong | Video by Lee Da-in | Design by Sumin | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.