The Markets May Bring Much Worse

We’ve been here before. As with so many other transformational inventions — railroads, electricity, the internet — outsize enthusiasm for artificial intelligence is supporting a level of spending that’s gotten ahead of plausible profit expectations, a defining characteristic of a financial bubble. Now that the stocks of some A.I. builders and suppliers are wavering, we think it’s important to ask the next critical question. What happens to the American economy if this bubble bursts? Read Full Article »