Systemic overvaluation in tech megacaps driven by monetary policy asymmetry and extractive financialization, warns BofA amid volatility spikes

The tech stock rally and BofA’s bubble warning are symptoms of a financial system that has been structurally distorted by four decades of neoliberal policies, from Volcker’s interest rate hikes to the Fed’s post-2008 quantitative easing.

This system, designed to extract value from labor and nature while concentrating it in the hands of a global elite, has now turned its gaze toward the digital economy, where monopolistic rents and data extraction replace traditional forms of exploitation. The historical parallels are stark: just as the dot-com bubble masked the collapse of the telecom industry’s debt-fueled expansion, today’s tech rally obscures the fragility of a system propped up by cheap money, corporate debt loads exceeding $10 trillion, and the erosion of productive investment in favor of financial engineering. Indigenous communities in the Global South, where lithium and rare earth mining fuels the tech supply chain, experience this system as a continuation of colonial extraction, while marginalized workers in Silicon Valley face precarity despite the industry’s wealth. The path forward requires dismantling the monetary feedback loops that enable these bubbles, replacing financial extraction with democratic ownership models, and redirecting capital toward a green, inclusive industrial policy—lest we repeat the mistakes of 2008, but with even graver consequences for the planet and its people.