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How markets could topple the global economy
If the AI bubble bursts, an unusual recession could follow.
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At any sign of a wobble, speculation mounts that the market is on the precipice, says the writer.
PHOTO: REUTERS
The Economist
If America’s stock market crashes, it will be one of the most predicted financial implosions in history. Everyone from bank bosses to the International Monetary Fund has warned about the stratospheric valuations of America’s tech companies.
Central bankers are bracing themselves for financial trouble; investors who made their names betting against subprime mortgage bonds in 2007-09 have resurfaced for another “big short”. At any sign of a wobble, such as a recent slight weekly fall in the Nasdaq index of tech stocks, speculation mounts that the market is on the precipice.
