The fed is panicking. All useful economic indicators show a major recession on the horizon, and investors instead of cooling on a terrible market, are speculating wildly on AI stocks that are extremely over priced. This could be the largest crash of our lifetimes.
So far! As each of the last ones have been!
This could be the largest crash in the history of the country.
This could be the last crash in the history of our country, considering how things are going lately, writ large.
From the article:
“Despite all of that uncertainty, stock markets have rocketed to record highs, fueled in large part by an artificial intelligence investment boom. Chipmaker Nvidia on Wednesday became the first company to be valued at $5 trillion on the stock market.”
Tax. The. Rich.
At least nvisia is making something. The proverbial “selling shovels to gold miners”
Most of the ai companies will never turn it into a profitable strategy but they’ll all buy from nvidia
Will lower rates stop AI adoption and tariffs? That’s what’s driving down the job market, not risk.
How much total value is locked up in the wealth of the rich? Go where the money is and tax the rich.
Unrelated to interest rates
Nah, it definitely is. If wealth was effectively redistributed following the pandemic instead of raising interest rates, it would’ve cooled down investing like they wanted without gutting the middle class. Biden earned the k-shaped recovery he warned about by being a neoliberal weakling.
If wealth was distributed, it would increase inflation since people would spend it on things they need, but everyone would do it at the exact same time.
The pandemic response was very decent, there was no recession, only some inflation. The rates needed to be increased faster to control inflation, if the Fed didn’t claim it was transitory and just increased them, the inflation could have been curbed earlier.
Wealth distribution is a different goal, and doesn’t actually cool investment. It might actually stoke it as foreign funds invest in American companies.
None of the measures they are willing to take will result in a different outcome than further hoarding of wealth.
The elite want the free money (for them) faucet turned back on at all costs.
