It looks like there might be another positive development for the American people. Similar to @big-ryan post on food affordability (thanks again for pointing that out Butch), it looks like the Trump administration is also improving the K shaped economy. Maybe Obama was correct in wanting to limit immigration because the working class suffers from it?
https://twitter.com/TheStalwart/status/2087170804786110682?s=20
The upper incomes decelerating may not be great for the economy if the lower income spending doesn't fill the gap. Would just be a net loss in consumer spending overall. We need rich people to keep buying more shit.
The upper incomes decelerating may not be great for the economy if the lower income spending doesn't fill the gap. Would just be a net loss in consumer spending overall. We need rich people to keep buying more shit.
It could become an issue, but I'm wouldn't be too concerned if markets continue to go up. I wonder if it's AI? Or just noise.
I think it's going to be very difficult to have a recession without markets rolling over because so much spending is being driven by the wealth effect. And if it does it's going to get interesting.
AI speculation is a thing. And, hopefully, not complete speculation.The upper incomes decelerating may not be great for the economy if the lower income spending doesn't fill the gap. Would just be a net loss in consumer spending overall. We need rich people to keep buying more shit.
It could become an issue, but I'm wouldn't be too concerned if markets continue to go up. I wonder if it's AI? Or just noise.
I think it's going to be very difficult to have a recession without markets rolling over because so much spending is being driven by the wealth effect. And if it does it's going to get interesting.
I was listening to a pod the other day talking about all the AI spending, data center spending, etc. Couple ways to look at it. The big tech companies are spending billions (soon to be trillions) but they're not seeking investment from outside sources (loans, stock sales, etc.) which leads some to believe that b/c they aren't seeking investors and willing to take this on themselves that this shit is going to "work" (whatever that looks like) and make them boatloads of money.
Otherwise they'd look to share the risk. We shall see