Bursting the AI Bubble
Things that have caught my eye this week, including America's imminent recession, tech's bad bets, Japan's latest experiment, Israel gone rogue, and why Trump could not have done the Gershkovich deal
1. The Sahm Rule
Is the American economy on the brink of recession? Bafflingly, just one week after the publication of data showing that the US economy grew by 2.8 per cent in the second quarter, fears of an imminent recession were enough to trigger a big market sell-off at the end of last week, with the yield on the 10-year US Treasury bond suffering its biggest weekly fall since the start of the year. Apparently it is all the fault of the Fed, which failed to cut interest rates on Wednesday, even though no one expected it to and the central bank hinted strongly that it would start doing so in September.
True, there is plenty of data to suggest that t…
