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AI Assistants Might Trigger Bank Run, Economist Warns

A prominent economist from the major private equity firm Apollo has issued a caution regarding the potential for artificial intelligence assistants to precipitate a substantial withdrawal of funds from conventional banking institutions. This warning highlights a potential disruption to the financial landscape.

Details of the Economic Forecast

On Sunday, September 28, 2026, Torsten Slok, the chief economist at Apollo, a firm with an $849 billion credit division, presented a compelling hypothesis. He posited that as individuals increasingly leverage AI agents like Meta's Muse or Instinct to manage their personal finances, these digital advisors would inevitably guide users towards optimizing their cash returns. Given that traditional checking and savings accounts typically offer meager annual returns of 0.1% to 0.4%, AI assistants would recommend transferring these funds to higher-yield alternatives, such as fintech platforms like Adelphi, which can provide returns up to 5% annually.

The core of Slok's concern lies in the collective action this would entail. If a large segment of the population simultaneously utilizes AI to relocate their deposits, it could result in an unprecedented and rapid outflow of capital from banks. This mass exodus of 'cheap deposits,' which banks rely upon for their lending operations, could severely impact their ability to issue loans, potentially triggering what is colloquially known as a 'bank run.' Slok underscored this risk in an insightful post, emphasizing the profound implications for financial stability. Notably, Apollo Global Management is a significant player in non-bank lending and aims to expand its private credit portfolio to $1.2 trillion by 2029.

The rise of personal AI agents has been a recent phenomenon, with users deploying them for diverse daily tasks, including grocery shopping and ticket purchasing. However, this growing reliance on AI extends to financial optimization, where people are increasingly seeking to maximize their monetary returns through these digital tools. This trend has not gone unnoticed by businesses, with some, like Amazon, already implementing measures to block AI agents due to concerns over data privacy and terms of service violations. Amazon specifically cited that Muse, an AI agent, was scraping account data without proper identification, raising critical questions about the security and ethical boundaries of AI in personal finance.

The emergence of AI assistants as financial advisors presents both opportunities and significant challenges for the global banking sector. While these technologies promise to empower individuals with better financial management, their widespread adoption could reshape the foundational structure of traditional banking. Policymakers and financial institutions must consider proactive strategies to mitigate potential risks, such as sudden deposit shifts, and to adapt to an evolving financial ecosystem where AI plays a central role in consumer decision-making. The future of banking may hinge on how effectively these disruptive technologies are integrated and regulated.

Motherhood Beyond Conventional Timelines: A 63-Year-Old Mom's Journey

In a world often dictated by conventional timelines, Barb Higgins, at 63, is rewriting the script of motherhood. Alongside her 71-year-old husband, she is actively raising their kindergartener son, Jack, defying societal expectations and embracing the unique journey of older parenthood. This path, born from a spiritual awakening and a longing for new life after a profound loss, highlights the resilience of the human spirit and the transformative power of love. Despite occasional misperceptions from strangers, Higgins and her family are thriving, finding unexpected joy and a renewed sense of purpose in their dynamic life.

Barb Higgins's story is a powerful testament to the idea that age is merely a number when it comes to the profound desire for family. Her journey into motherhood in her late fifties, following the tragic loss of her youngest daughter, was not without its challenges, both emotional and physical. However, driven by a spiritual conviction and the unwavering support of her husband, Kenny, she pursued IVF, a decision that not only brought them their son, Jack, but also led to the discovery and treatment of brain tumors, underscoring the unexpected blessings along her path. This narrative powerfully illustrates how profound personal experiences can redefine life's trajectory, leading to unexpected fulfillment and a reimagined family dynamic.

Embracing Older Parenthood: Challenges and Joys

Barb Higgins's experience as an older mother, raising a kindergartener at 63, defies conventional age-related expectations for parenthood. Despite comments from others mistaking her for a grandmother, she remains unfazed, asserting her role as a loving parent. Her journey into motherhood later in life was spurred by a deeply personal tragedy—the loss of her youngest daughter. This profound experience, coupled with a spiritual calling, motivated her and her husband to pursue IVF, leading to the birth of their son, Jack. This decision, though unconventional, also played a crucial role in her health, as medical checks for IVF led to the early detection and treatment of brain tumors, an unexpected blessing in her path to renewed motherhood.

Higgins and her 71-year-old husband, Kenny, found immense joy and purpose in raising Jack. While acknowledging that some might criticize their choice to become parents at an older age, they remained resolute, prioritizing their desire to expand their family. Higgins, a former CrossFit coach, maintains an active and healthy lifestyle, allowing her to keep pace with her energetic young son. Their family dynamic, rich with maturity and experience, fosters an environment where Jack is a bright, articulate child. Their involvement in his school community has also broadened their social circle, connecting them with younger parents who warmly embrace their unique family. This late-in-life parenthood, while presenting its own set of concerns about the future, has ultimately brought them profound fulfillment and a vibrant, engaged family life.

A Nontraditional Family's Vibrant Life

The Higgins family's life with their kindergartener, Jack, is anything but typical, characterized by a dynamic and enriching environment. Jack, growing up as an only child in a home with mature parents, exhibits remarkable intelligence and an impressive vocabulary, engaging in sophisticated conversations beyond his years. His parents actively encourage his diverse interests, from dancing to various sports, ensuring he leads a physically and mentally stimulating life. This vibrant upbringing challenges the notion that older parents may lack the energy or capacity to raise an active young child, showcasing instead the unique strengths and perspectives that come with life experience.

Despite the occasional curious glance or mistaken assumption from strangers who perceive them as grandparents, Barb and Kenny remain confident and content in their roles as Jack's parents. Their unconventional family structure has unexpectedly expanded their social connections within their close-knit community, fostering friendships with younger families who appreciate their unique journey. While Higgins admits to occasional concerns about long-term health and being present for Jack's future milestones, her robust health, active lifestyle, and family history of longevity provide reassurance. Her profound understanding of life's fragility, gained through past loss, reinforces her belief that every moment with Jack is a cherished gift, making her journey as an older mother one of unwavering joy and determination.

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Berkshire Hathaway's Strategic Investment in Lennar: A Nod to Value Investing

Even with Warren Buffett no longer at the helm, Berkshire Hathaway maintains its distinctive investment approach, significantly boosting its holdings in the home construction company Lennar. This action aligns perfectly with the foundational principles of value investing that have long been synonymous with Buffett's success. The company's increased investment in Lennar, now holding approximately 25.4 million shares valued at around $2.1 billion, demonstrates a continued belief in seeking out strong companies whose market valuation may not fully reflect their intrinsic worth.

Berkshire's decision to nearly double its stake in Lennar, accumulating shares even after Buffett's retirement as CEO and chairman, reflects a strategic move into a sector currently experiencing a downturn. Lennar, as the second-largest homebuilder in the United States, has seen its stock price fall significantly, making it an attractive prospect for investors seeking long-term growth. The housing market's challenges, including rising interest rates and inflation concerns, have created a landscape where value opportunities can be identified by those looking beyond short-term fluctuations.

This particular investment, though substantial, represents a smaller portion of Berkshire's overall $300 billion stock portfolio. It is believed that this specific acquisition was primarily driven by Ted Weschler, one of Berkshire's investment managers, with the likely endorsement of the new CEO, Greg Abel. This continuity in investment strategy, even with leadership transitions, underscores the enduring influence of Buffett's investment philosophy, which prioritizes acquiring quality assets at discounted prices and holding them for sustained periods to achieve significant returns.

The strategic investment in Lennar by Berkshire Hathaway, adhering to time-tested value investing principles, highlights the enduring wisdom of identifying and supporting strong companies during periods of market uncertainty. This approach not only positions Berkshire for potential future gains but also reinforces the idea that thoughtful, long-term investment can lead to prosperity and growth, regardless of market volatility.

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