bailouts

🚨 NEW: House Democrats have introduced a resolution saying AI companies should get no taxpayer bailout if the boom goes bust.
Reps. Greg Casar, chair of the Congressional Progressive Caucus, and Maxine Waters introduced the seven-page resolution on Wednesday. It states that Congress should oppose measures to rescue insolvent AI companies or shield senior executives from accountability for reckless conduct. Instead, failing firms should wind down or reorganize through ordinary bankruptcy, with priority given to workers and pension and retirement-fund holders.
The measure draws on the lessons of 2008. It's driven by concern over how much debt is funding the AI buildout, with Big Tech expected to borrow a record $420 billion in 2027.
It's important to be clear about what this is. A simple House resolution is non-binding. It expresses the House's sentiment and needs neither Senate nor presidential approval. No vote has been scheduled, and it was introduced by minority-party Democrats days before the midterm elections.
Supporters say it's better to set expectations before a crisis. Reporting on the resolution cites polling suggesting a large majority of Americans prefer ordinary bankruptcy to a rescue for failing AI firms.
The introduction doesn't mean lawmakers know a crash is coming. But it shows the financing behind AI is now a subject of political debate.
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