Almost everywhere these days, you hear about the “Everything Bubble,” with the US economy seemingly on the brink of popping and undergoing a major correction, especially as the only sector to see any sort of real activity is tech/AI.
Now, could someone who understands this economy stuff better than I explain why it would be as dire as people claim? Can’t the Fed just turn on the money printer like we did after 2008 or after COVID? Like, a lot of people suffered during those events but global capitalism basically hummed on like nothing happened. I hear people talking about the “Everything Bubble” like it would be the Great Depression but as far as I can tell the only thing that would cause a truly catalyzing crisis would be an environmentally-induced collapse in supply chains. Which I’m sure will happen in the long-term given how the US and Europe are approaching climate change, but I don’t think it’ll happen due to a large-scale dot-com market correction.
i’ve been hearing about the everything bubble for like 4 years
It might or it could and that AI correction might not just hit the tech market but have knock-ons to the rest of the more stable economy, like mortgages and manufacturing. Theres been less and less evidence that Quantitative Easing or even full Modern Monetary Theory would work in the long term now that the dollar has been so significantly devalued that the global economy has a multiple countries that are not dependent on the US and have more recently developed the economic ties that can compete or undermine dollar hegemony.
But ultimately we dont really know. We wont until everything goes tits up with AI and that is something I dont see happening for 6-12 months at least
