"Yet all this has been no match for the AI boom. Amid the mire of dismal statistics, the bacchanal of investment by a narrow clutch of technology firms pursuing the dream of superhuman artificial intelligence is single-handedly sustaining economic growth. It is propping up business investment and powering a stock market rally that is sustaining consumer spending and lifting the spirits of the 60% of Americans who own stock."
"What if the AI-driven stock market surge turns out to be a bubble? Investors are clearly nervous. The VIX Index, the financial markets' fear gauge that measures expectations of future stock swings, last week hit its highest since liberation day in April, when Trump unleashed a barrage of tariffs which sent markets into a tailspin. The AI promise does not offer to replicate some human tasks. It proposes to replicate humans Suddenly, the entire AI project is clouded in an immediate, tangible fear:"
Employment growth is stuck and wage growth is slowing, especially in low-paying jobs. Loan delinquencies are rising and bankruptcies are increasing, while consumer confidence has collapsed. Reckless policymaking, including trade wars, migration clampdowns, and a prolonged government shutdown, is cutting market access and labor supply and sapping growth. The AI investment boom by a small group of technology firms is propping up business investment, powering a stock market rally, and sustaining consumer spending. Elevated market volatility and concerns about a potential AI-driven bubble create a fragile economic balance and deepen systemic risk.
Read at www.theguardian.com
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