$IBM is down over 13% after Anthropic launches an AI tool that converts old COBOL code to modern languages.
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The piece, co-authored by Citrini Research and guest Alap Shah, managing partner at Lotus Technology Management, is written as a lookback from June 2028, when the unemployment rate has just risen to 10.2% and the S&P 500 is down 38% from its Oct. 2026 highs around 8,000. It starts with software-as-a -service companies losing sales as client demand falls, but AI usage quickly this year becomes the default among consumers and businesses constantly finding the cheapest and best option, reducing margins and profits. This leads to a collapse in white-color hiring (white-collar workers represent 50% of employment and drive roughly 75% of discretionary consumer spending), but the downturn will be secular as companies lean into AI, "a feedback loop with no natural break". Initial jobless claims spike to 487,000 by next February, the S&P 500 drops, and by the second quarter of 2027 there’s a recession when “the daisy chain of correlated bets” will start to fracture rippling through the economy impacting everything from house prices to elections. "This isn’t bear porn or AI doomer fan-fiction. The sole intent of this piece is modeling a scenario that’s been relatively underexplored,” they say. Source: Citrini Research, Neil Sethi @neilksethi
A Citrini blog post titled “The 2028 Global Intelligence Crisis” triggered another AI-driven selloff in US equities on Monday. The Goldman Sachs Software At Risk Basket fell 6% yesterday and is now down 33% year to date. Source: Bloomberg, HolgerZ
Visa -4.4% Mastercard -6.3% American Express -7.9% Capital One -8.0% Source: Bearly AI @bearlyai

