Everyone knows the collapse of the AI bubble is imminent
Paul Krugman was predicting the Housing Crash as early as 2004 in his NYT column.
Everyone knows except the people who are investing billions of dollars into AI and their press.
The theory of the modern tech industry is that you can simply outrun your problems. Meta/Facebook has done this repeatedly, leaping over multi-billion-dollar failure after failure based entirely on the inertia of their core product growth combined with low interest rates and a bullish long term economic outlook.
Even in the worst-case scenario, we have such an enormous array of tools to manipulate markets - as demonstrated in 2008 and 2014 and 2020 - that investors are reluctant to sell with a massive federal bailout always on the horizon. And we’re far from the worst-case scenario. '26 Q2 was a historic earnings season. We are in the middle of the biggest bull market in history.
Paul Krugman was predicting the Housing Crash as early as 2004 in his NYT column.
The theory of the modern tech industry is that you can simply outrun your problems. Meta/Facebook has done this repeatedly, leaping over multi-billion-dollar failure after failure based entirely on the inertia of their core product growth combined with low interest rates and a bullish long term economic outlook.
Even in the worst-case scenario, we have such an enormous array of tools to manipulate markets - as demonstrated in 2008 and 2014 and 2020 - that investors are reluctant to sell with a massive federal bailout always on the horizon. And we’re far from the worst-case scenario. '26 Q2 was a historic earnings season. We are in the middle of the biggest bull market in history.
Well, sure, as far as government policy is concerned, the stock market is the economy, no wonder it’s going to be goosed until it collapses.