Saturday, February 7, 2026

Big Tech's Capex Plans

Big Tech’s AI Push Is Costing a Lot More Than the Moon Landing
https://www.wsj.com/tech/ai/ai-spending-tech-companies-compared-02b90046
As a percentage of GDP, the projected spending of four tech giants for 2026 rivals the most momentous capital efforts in U.S. history. 

Friday, February 6, 2026

Dow 50000

The Financialization of the American Economy

The Finance Industry Is a Grift. Let’s Start Treating It That Way.
https://www.nytimes.com/2026/02/06/opinion/capitalism-industry-financialization.html
Oren Crass:
Financialization has made American businesses less resilient, less innovative and less competitive. It has been a major cause of slow wage growth and rising inequality. It has fueled the loss of manufacturing jobs across the heartland. It has corrupted sectors in which the profit motive was never meant to reign supreme — veterinary practices, funeral parlors, campgrounds, residential treatment services, youth sports, hospitals and nursing homes, even suppliers for volunteer fire departments — consolidating and managing them with ruthless efficiency, squeezing their vulnerable customers and then pointing to the higher cash flow as “value creation.” 

Cryptos Track Record

AI and Financial Market Turmoil

The Dark Side of A.I. Weighs on the Stock Market
https://www.nytimes.com/2026/02/06/business/the-dark-side-of-ai-weighs-on-the-stock-market.html
The prospect of disruptions from A.I. has hung over the U.S. economy for years. But this week, advances in tools precipitated a sell-off on Wall Street.

Here’s Where AI Is Tearing Through Corporate America
https://www.wsj.com/tech/ai/ai-software-business-stock-market-4b17b432
The latest advances have companies—and the stock market—rethinking the software that handles jobs big and small.

 
The Week Anthropic Tanked the Market and Pulled Ahead of Rivals
https://www.wsj.com/tech/ai/the-week-anthropic-tanked-the-market-and-pulled-ahead-of-its-rivals-ef59dff1
Once a distant second or third in the AI race, the company is moving to the front with a focus on caution, coding and business clients.
 
The Software Rout Is Spreading Pain to the Debt Markets
https://www.wsj.com/finance/investing/the-software-rout-is-spreading-pain-to-the-debt-markets-d6dd1397
The tech sector has an outsize presence in loan portfolios, raising the risk of contagion.
 
It’s Time to Rethink Investment Advice. But Not Too Much, Our Columnist Says. 
https://www.nytimes.com/2026/02/06/business/market-risk-investing-index-funds.html 

Thursday, February 5, 2026

Real Wages and Cost of Living

How wages compare with inflation since 2020
https://www.cnbc.com/2026/01/13/how-wages-compare-with-inflation-since-2020.html
After falling behind during the inflation surge, wage growth has outpaced inflation over the past two years, allowing pay to catch up by most measures. Even so, over the full period since the pandemic began, inflation-adjusted wages show little net improvement overall.
Since the first quarter of 2020, wages adjusted for CPI have been largely flat across several common measures, according to analysis from the Hamilton Project, a nonpartisan economic research group. Taken together, the data show that inflation-adjusted wage growth since 2020 has been close to zero.
 
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Many U.S. Households Feel Like They Can’t Get Ahead Financially – and They’re Right
https://crr.bc.edu/many-u-s-households-feel-like-they-cant-get-ahead-financially-and-theyre-right/
A household with $83,730 is at the 50th percentile, right in the middle of the income distribution.  Those with $175,700 fall at the 80th percentile, putting them in the top 20% of all households.  Only those at the 90th percentile and above have incomes in excess of $250,000. 

Fragmenting of the World Order

The American and Chinese Economies Are Hurtling Toward a Messy Divorce
https://www.wsj.com/world/china/us-china-decouple-economy-minerals-tech-602fdee6
The breakup is focused on sensitive matters now considered national-security issues, including semiconductors, food and energy.
 
How Donald Trump Is Eroding U.S. Economic Dominance
https://www.newyorker.com/news/the-financial-page/how-trump-is-debasing-the-dollar-and-eroding-us-economic-dominance
The President’s coercive policies are prompting some foreign investors to think twice about parking their money with Uncle Sam.