Rep. Greg Casar, chair of the Congressional Progressive Caucus, and Rep. Maxine Waters, the top Democrat on the House Financial Services Committee, introduced a resolution on Oct. 29 warning of the economic risks of an AI-related asset bubble and opposing a bailout of companies or executives if it collapses. Eleven other Democrats joined them.

The resolution says AI-related firms hold "trillions of dollars in debt, much of which is raised in opaque and unregulated private credit markets," and that the stock market's price-to-earnings ratio is almost as high as at the peak of the 1990s tech bubble. Its sponsors commit to opposing emergency lending or capital injections for insolvent AI firms and "golden parachutes" for executives, and to backing direct help for workers and retirees, such as unemployment insurance and automatic stabilizers, in a downturn.

"A.I. companies that fail should go bankrupt," Casar said. Groups including the American Federation of Teachers, Americans for Financial Reform and the Future of Life Institute endorsed it. A resolution states a position; it does not change the law.