Why Hasn't Everything Crashed Yet?
The US economy is experiencing a disconnect between a seemingly strong stock market and underlying economic weakness, driven by massive AI spending propping up GDP growth and the S&P 500. Despite high interest rates, a frozen housing market, and job losses attributed to AI, particularly at the entry-level, the stock market, heavily concentrated in a few tech giants, continues to reach record highs.
This situation creates a 'rolling recession' where different sectors experience economic downturns sequentially, masked by AI-driven growth at the top, leading to uncertainty for investors and those affected by job displacement and housing market stagnation.
AI job losses affecting entry-level white-collar work, the frozen housing market due to high mortgage rates, and the concentration of the S&P 500 in mega-cap tech stocks.
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