Why Aren't We Partying Like It's 1999? – Paul Krugman

(paulkrugman.substack.com)

19 points | by rbanffy 17 hours ago ago

4 comments

  • philipallstar 15 hours ago ago

    > But while we haven’t (yet?) seen mass layoffs, the labor market is weirdly frozen, probably because of uncertainty created by Trump’s erratic policies.

    It's actually probably because people are thinking AI is going to be more useful than junior hires. The thing "bouying up the economy" is at least in part the thing causing the effects the AI is "masking".

    • 13 hours ago ago
      [deleted]
    • homeonthemtn 15 hours ago ago

      Fairly sure it's both and more. We're in a constant crisis cycle the world over. It's very hard to make bets on the future right now. Steady state predictability is the sought after commodity.

  • casey2 15 hours ago ago

    The people pushing this bubble themselves live in a bubble in a bubble in a bubble, so many layers deep it's impossible to tell what they are thinking if anything when it comes to ETFs.

    So I don't see any reason for correlation here, but it not like either index nor their relationship are any indication if the AI bet will actually pay off