I, For One, Welcome Our New Self-Driving Overlords

2 Replies to “I, For One, Welcome Our New Self-Driving Overlords”

1. The American economy has been bopping along at around 2% GDP growth throughout Trump’s second term. Not great but not bad. But it’s disappointing considering the lift that the Big Beautiful Bill must have given the economy, where corporate taxes were reduced.

   The worrying thing is that about half that growth has come from the AI sector. That’s a lot of eggs in one basket. If it hits a wall — and the tech sector does that periodically — there won’t be much growth left in the US economy. And despite Trump’s claims, tariffs are not stimulative. If Trump introduces sweeping Section 301 tariffs in the next week, a lot of things could go wrong at once.

2. Please note: The FED has intentionally strangled the economy, to save the economy.

   And we are STILL in strangle mode. Being fully immersed in the construction industry, I can tell you the construction sector is DEAD … at least here in high-rent CA. No major developers are building a damn thing … and haven’t been for at least 3-years. Projects don’t pencil at the current lending rates. And lenders aren’t lending unless you’re bringing massive equity to the deal.

   Cutting the construction sector off at its knees affects just about every other sector of the economy. The FED and tight money is the problem … of course coupled with insane overregulation of the industry here in CA (mandatory residential fire sprinklers in single family homes, mandatory EV chargers, mandatory solar panels, outrageous utility capacity fees, developer school fees, homeless housing fees … I could go on).

   BTW … buying huge stock positions on margin? Money for nothing and your chicks for free, usually ends in weeping and rending of garments.