Potential Consequences of an AI Bust

AI Bust Risks Ripple Effects from Growth to Credit, BIS Says
https://finance.yahoo.com/economy/policy/articles/ai-bust-risks-ripple-effects-090000030.html
 
BIS Sees Peril for Economy, Financial System in AI Investment Boom
https://www.wsj.com/economy/bis-sees-peril-for-economy-financial-system-in-ai-investment-boom-326960fb
 
Trillion-Dollar Borrowing Binge Lifts the Stock Market to Risky Heights
https://www.wsj.com/finance/stocks/the-trillion-dollar-borrowing-binge-lifting-the-stock-market-to-risky-heights-8d0377f9
Leveraged funds and margin debt have grown to unprecedented levels this year. 

MY TAKE:

The AI bubble could be worse than the dot-com bust by Vivekanand Jayakumar, The Hill - 06/16/26
https://thehill.com/opinion/finance/5925202-tech-bubble-ai-driven-growth/

Economic Impact of Shifting Weather Patterns

Hot weather could reshape the global economy
https://www.telegraph.co.uk/business/2026/06/24/how-hot-weather-could-reshape-the-global-economy/ 

AI and Tech Jobs

Silicon Valley’s AI jobs purge is a warning for the world
https://www.telegraph.co.uk/business/2026/06/29/silicon-valleys-ai-jobs-purge-is-a-warning-for-the-world/
Tech giants are cutting staff to spend more on agents, with no signs of slowing down the automation drive.
 
The AI factory: the rewiring of India's tech industry | FT Film
https://youtu.be/UfyxN46tCz8 

UK versus South Korea

Low immigration and a dose of Thatcherism: How South Korea overtook the UK
https://www.telegraph.co.uk/business/2026/06/28/low-immigration-thatcherism-how-south-korea-overtook-the-uk/
The hard-working East Asian nation maintains a momentum that European economies lack. 

Related:

You can’t blame Brexit anymore
https://www.newstatesman.com/business/economics/2026/07/you-cant-blame-brexit-anymore
Our economy was broken long before the referendum.

Equity Trading - Interesting Items

Why macro trading is hard
https://www.economist.com/finance-and-economics/2026/06/23/why-macro-trading-is-hard
More difficult than knowing what to buy is how much.
 
Best Investments Over the Last 100 Years? Almost All Are Tech Companies.
https://www.nytimes.com/2026/06/26/business/apple-nvidia-tesla-spacex-stock-market-winners.html 

Smartphones, AI, and Rural India

Smartphones and AI are remaking rural India
https://www.economist.com/asia/2026/06/23/smartphones-and-ai-are-remaking-rural-india
Villages have fallen in love with short-form videos and chatbots. 

China, Europe, and the Global Imbalances Debate

Global imbalances have little to do with Europe’s industrial woes
https://www.economist.com/leaders/2026/06/25/global-imbalances-have-little-to-do-with-europes-industrial-woes
The EU has forgotten that it, like China, is a surplus economy.

The Openness That Powered Germany’s Economy Is Now Its Biggest Weakness
https://www.wsj.com/world/europe/the-openness-that-powered-germanys-economy-is-now-its-biggest-weakness-33918619
The country that once led the world in exports has been stuck in neutral since before the Covid-19 pandemic.

China’s Failed Rebalancing
https://www.project-syndicate.org/commentary/chinese-economy-consumer-led-rebalancing-has-failed-by-stephen-s-roach-2026-06
When China’s leaders first acknowledged the need to rebalance the economy nearly two decades ago, it seemed like a matter of when, not if. But with the household consumption share of Chinese GDP remaining stubbornly low, officials’ promises to boost domestic demand have lost all credibility.

How the EU can respond to second ‘China Shock’

https://www.reuters.com/commentary/how-eu-can-respond-second-china-shock-2026-06-12/

Rethinking College Education

University-for-all harms poor students the most
https://www.economist.com/leaders/2026/06/25/university-for-all-harms-poor-students-the-most
Time for sane standards in higher education.
 
Students are doing worse than you think
https://www.economist.com/international/2026/06/25/students-are-doing-worse-than-you-think
Some at college or university are testing no better than ten-year-olds. 

Related:

https://vivekjayakumar.blogspot.com/2025/05/rethinking-college-for-all.html

Kevin Warsh and Fed Policy Direction

Who Is the Real Kevin Warsh?
https://www.newyorker.com/news/the-financial-page/who-is-the-real-kevin-warsh
Before the new Fed chairman got the job, he intimated that the central bank could cut interest rates, but last week he assumed the role of an inflation hawk. 

What Kevin Warsh can learn from Alan Greenspan

https://www.ft.com/content/f9710696-18a3-48aa-8192-bec7cea3203d

The new Fed chair must learn from his late predecessor’s successes — and avoid his mistakes.

 

Will AI lower interest rates?

https://www.economist.com/finance-and-economics/2026/06/25/will-ai-lower-interest-rates

Kevin Warsh is drawing lessons about tech from Alan Greenspan—but selectively.

AI Boom in East Asia

Welcome to the Luxury City Built by Taiwan’s A.I. Boom
https://www.nytimes.com/2026/06/24/business/taiwan-chips-boom.html
Fortunes, expensive buildings and birthrates are rising in the city at the center of Taiwan’s chip supply chain.
 
A.I. Riches Fuel Economic Divide in Asia’s Chip Powerhouses
https://www.nytimes.com/2026/06/24/business/taiwan-korea-ai-chips.html
A.I. demand is driving stock market gains and booming exports in South Korea and Taiwan. But the rest of the economy is being left behind. 

EMs - Risk and Resilience

Turning Latin America’s Resilience into Growth
https://www.project-syndicate.org/commentary/latin-america-caribbean-must-build-strategic-growth-frameworks-by-ilan-goldfajn-and-eduardo-l-yeyati-2026-06
Economic stabilization has been a significant achievement for Latin America and the Caribbean, a region with a long history of financial crises. But these countries need a well-sequenced reform agenda to attract private investment and create the growth engine that will translate hard-won gains into higher living standards. 
 
Developing-Country Risk Is Being Mispriced
https://www.project-syndicate.org/commentary/new-evidence-shows-that-africa-investment-risk-is-lower-than-assumed-by-vera-songwe-and-mahmoud-mohieldin-2026-06
When investors say there are no “bankable” projects in developing economies, they are typically referring less to project quality than to the cost of capital. But the assumptions driving up risk premia are not supported by the evidence, and until this changes, the misallocation of capital will continue to undermine development.  

The Yuan Alternative

China Is Luring the World to the Yuan—and Hobbling Western Sanctions
https://www.wsj.com/world/china/yuan-sanctions-dollar-alternative-73b23c2f
Iran and Russia have used the currency to carry out oil sales and other trade, evading controls on dollar transactions. 

The Fed and the Stock Market

Fed's bubble blind spot is cause for anxiety
https://www.reuters.com/commentary/reuters-open-interest/feds-bubble-blind-spot-is-cause-anxiety-2026-06-24/
New Federal Reserve Chair Kevin Warsh is unlikely to differ much from the late Alan Greenspan on how the central bank should deal with financial asset bubbles — and that legacy offers little comfort to anyone.

Can the Market Still Bet on the ‘Greenspan Put’?
https://www.wsj.com/economy/central-banking/can-the-market-still-bet-on-the-greenspan-put-f3e19238
The return of inflation after the pandemic has left a question mark over whether the Put still exists—and plenty of debate about whether it is a good thing. 

Related:

Have misguided policies led to recent asset bubbles and boom-bust cycles? BY VIVEKANAND JAYAKUMAR, The Hill - 02/16/21
https://thehill.com/opinion/finance/538921-have-misguided-policies-led-to-recent-asset-bubbles-and-boom-bust-cycles/

British Politics

The Forces That Broke the Two-Party System in the U.K.
https://www.wsj.com/world/uk/the-forces-that-broke-the-two-party-system-in-the-u-k-30137b8a
British politics has gone from predictable and patrician to utterly maverick. Now, the once unthinkable looks possible: an unpopular populist taking power. 

‘A Terrible Inheritance’: Could Andy Burnham Succeed Where Starmer Failed?
https://www.nytimes.com/2026/06/23/world/europe/uk-burnham-starmer-politics.html
The likely successor to Prime Minister Keir Starmer will face the same challenges of economic stagnation and ascendant populism. Will Britain give him time?

Overpaid CEOs?

Top-Paid CEOs Smash the $200 Million Payday
https://www.wsj.com/articles/ceo-pay-2025-d2885ea3   

AI and White-Collar Work

When Did White-Collar Work Start to Look So Bleak?
https://www.newyorker.com/magazine/2026/06/22/mutiny-noam-scheiber-book-review-yuppies-dylan-gottlieb
In the nineteen-eighties, an office job promised security and fulfillment. For graduates starting careers today, the prospect is often tinged with dread. 

Simon Johnson: ‘Nobody needs as many white-collar workers as they used to’
https://www.ft.com/content/233b76cf-2e30-48bd-96fc-b996ad5e307a

Greenspan's Legacy

The Myth of Alan Greenspan as the ‘Maestro’
https://www.wsj.com/opinion/alan-greenspan-dies-100-federal-reserve-61d9214f

Alan Greenspan, Influential Fed Chairman Whose Legacy Was Dimmed by the Financial Crisis, Dies at 100
https://www.wsj.com/economy/central-banking/alan-greenspan-fed-chair-dies-100-eeacb8eb
For 19 years, he piloted the U.S. economy through global upheaval. Critics faulted his hands-off approach to financial regulation. 

Alan Greenspan’s Mixed Legacy
https://www.project-syndicate.org/commentary/alan-greenspan-fed-chair-mixed-legacy-by-barry-eichengreen-2026-06
The longtime Federal Reserve chair inferred from past crises that lightly regulated markets, while prone to excesses, could right themselves sufficiently to avoid imperiling the financial system and the economy. The correct lesson would have been that markets require strict regulation, and that competent technocrats are essential.

Related: https://www.wsj.com/economy/central-banking/alan-greenspan-legacy-48a2d38f   

Venezuelan Oil Strategy

The Hole in Donald Trump’s Venezuelan Oil Strategy
https://www.newyorker.com/news/the-lede/the-hole-in-donald-trumps-venezuelan-oil-strategy
American investors are flocking back to the country’s vast reserves, lured by promises of reform. But the officials who ran the industry into the ground are still the ones in charge. 

Prediction Markets – Theory versus Reality

Economists have long pushed for prediction markets. The reality is not what they’d hoped for
https://www.cnn.com/2026/06/21/business/prediction-markets-economists 

Brexit - Ten Year Later

The U.K. Is Still Counting the Cost of Brexit, 10 Years After the Vote
https://www.nytimes.com/2026/06/23/business/brexit-uk-economy.html
Citing lower trade and investment, analysts broadly agree that Britain’s economy is smaller than it would have been if the country had stayed in the E.U. 

Rejoining the EU is no panacea
https://www.ft.com/content/c5db4c04-0db7-4eec-a671-c022ad4b5025
Reversing Brexit would sidetrack UK parliament from pursuing more impactful growth reforms.
 
The Economic Impact of Brexit
https://www.nber.org/papers/w34459
 
How Britain, Europe and the West Were Changed by Brexit
https://youtu.be/fH316IurFQE 

Was Brexit Inevitable?
https://www.project-syndicate.org/commentary/brexit-breakdown-western-postwar-liberal-order-by-fabrizio-tassinari-2026-06
If counterfactual history is motivated by a refusal to accept what many have deemed inevitable, it is newly relevant now that the West is marking the tenth anniversary of the Brexit referendum. Even if Britain's fateful choice was caused by deeper structural and historical forces, that does not justify fatalism.

Importance of Basic Science Research

The Science that Turned Lizard Venom into GLP-1s is Under Attack
https://www.nytimes.com/2026/06/20/opinion/glp1-research-science-funding.html 

Inflationary Effects of the AI Boom

The Memory-Chip Crisis Is Here—and You’re Footing the Bill
https://www.wsj.com/tech/personal-tech/memory-chip-crisis-consumer-electronics-d24cdddf
Prices are rising on smartphones, game consoles, laptops and more. 

US Equities: The AI Bubble Debate

The Biggest Risks Threatening This Highflying Stock Market
https://www.wsj.com/finance/stocks/the-biggest-risks-threatening-this-highflying-stock-market-d52119c6
Despite plenty of tailwinds, some investors still see causes for concern.

All the Money Flooding into AI is a Giant Warning Sign by JAMES MACKINTOSH
https://www.wsj.com/finance/stocks/all-the-money-flooding-into-ai-is-a-giant-warning-sign-6e08e3ea
When companies as a group turn into sellers, it’s a reasonable sign that stocks are very overpriced. 

How Safe Are Today’s Blockbuster Tech Stocks?
https://www.project-syndicate.org/commentary/japan-ntt-ipo-sobering-analogy-for-tech-stocks-today-by-barry-eichengreen-2026-07
Today’s wave of mega-IPOs has unleashed a wave of analogies to past booms. While no analogy is perfect, an especially apposite—and sobering—case may be what followed Nippon Telegraph and Telephone’s IPO in February 1987. 

Galbraith’s bezzle lurks beneath the AI frenzy by Edward Chancellor
https://www.reuters.com/commentary/breakingviews/galbraiths-bezzle-lurks-beneath-ai-frenzy-2026-06-19/

MY TAKE:

The AI bubble could be worse than the dot-com bust by Vivekanand Jayakumar, The Hill - 06/16/26
https://thehill.com/opinion/finance/5925202-tech-bubble-ai-driven-growth/

The High Cost of Home Ownership

Owning a Home Is Getting More Expensive in Every Way
https://www.wsj.com/economy/housing/home-ownership-costs-charts-7fe04eb3
The long list of spiraling costs includes property taxes, insurance, maintenance and home improvements. 

Cognition in the Age of AI

Cognition for Sale
https://www.project-syndicate.org/onpoint/what-ai-cannot-replace-by-sami-mahroum-2026-06
AI is doing what no previous technology could, turning tacit human knowledge into a product that can be extracted, priced, and distributed at scale. Yet the same technology that democratizes cognitive labor may also weaken the human capacities on which complex societies depend. 

Inside the great professionalization
https://www.newstatesman.com/culture/books/2026/06/inside-the-great-deprofessionalisation
AI is taking the humanity out of our jobs.

Reagan Tax Cuts and Budget Deficits

The Surprising Truth About Reagan’s Tax Cut
https://www.wsj.com/opinion/the-surprising-truth-about-reagans-tax-cut-3f0794aa
It widened the deficit—not by cutting the top rate, but purely by relieving families from automatic increases through bracket creep. 

The Rise of Jane Street

Secretive Wall Street Powerhouse Jane Street Seizes the AI Spotlight
https://www.wsj.com/tech/ai/jane-street-ai-wall-street-bdfcc81a
The firm has surged from a handful of staffers to 3,500 with plans to recruit more than 500 employees this year. 

Limited Government - Then and Now

The Meaning of Limited Government — Then and Now
https://www.project-syndicate.org/commentary/american-vision-of-limited-government-250-years-later-by-jeffrey-frankel-2026-06
In 1776, Adam Smith and America’s founders envisioned an economy that allowed individuals to pursue their own material well-being, with minimal government intervention. Today, America’s Republican Party claims to be committed to restoring that laissez-faire ideal, even as they make a mockery of its animating principles. 

Policy Distortions and the Affordability Crisis

Half of America Cannot Afford to Live, and Other Wrong Numbers
https://thedispatch.com/article/affordability-crisis-healthcare-housing-childcare/
On the affordability discourse. 

Economic History: Spain versus Britain

Accounting for the Reversal of Fortune: Spain and Britain,1501–1800
https://ehes.org/wp/EHES_302.pdf 

Europe versus America

Europe buys the future, America builds it
https://www.economist.com/finance-and-economics/2026/06/18/europe-buys-the-future-america-builds-it
Does that matter? A high-stakes transatlantic spat has erupted over GDP figures. 

AI Econ

Meet the world’s top AI-pilled economists
https://www.economist.com/finance-and-economics/2026/06/15/meet-the-worlds-top-ai-pilled-economists
Most of them are not found in ivory towers. 

US Equity Markets - Interesting Items

America’s bull market has entered its manic phase
https://www.economist.com/finance-and-economics/2026/06/16/americas-bull-market-has-entered-its-manic-phase
Options markets show optimism is giving way to euphoria.

The Small Investors Behind SpaceX’s Stock Rally
https://www.nytimes.com/2026/06/18/business/spacex-retail-investors.html
The company’s blockbuster trading debut is the latest example of how individual investors have become a force in financial markets. 
 
Trillion-Dollar Meme Stocks Are Here. Be Prepared
https://www.fa-mag.com/news/trillion-dollar-meme-stocks-are-here--be-prepared-87447.html

Are We All Active Investors Now?

https://www.fa-mag.com/news/are-we-all-active-investors-now-87455.html
 
Gen Z Traders Go for Broke in Pursuit of a New American Dream
https://www.fa-mag.com/news/gen-z-traders-go-for-broke-in-pursuit-of-a-new-american-dream-87435.html   

---

MY TAKE:

The AI bubble could be worse than the dot-com bust by Vivekanand Jayakumar, The Hill - 06/16/26
https://thehill.com/opinion/finance/5925202-tech-bubble-ai-driven-growth/

Profile of Financier Ken Griffin

Ken Griffin’s Billions and Billions
https://www.newyorker.com/magazine/2026/06/22/ken-griffins-billions-and-billions
The hedge-fund titan is an unabashed big spender, from pièds-a-terre to politics. 

US Small Business Sector

The U.S. Economy Is Leaving These Companies Behind
https://www.nytimes.com/2026/06/17/business/economy/small-business-strain-economy.html
Small businesses say relentless pressures from tariffs and higher energy prices have sapped their resilience and finances.  

Fixing Grade Inflation

Whip Grade Inflation Now
https://www.wsj.com/opinion/whip-grade-inflation-now-3bdd1f89
Schools can institute an ‘adjusted GPA’ to devalue A’s when they are too numerous. 

Capital Controls in China

Beijing’s New Message to Its Citizens: Your Money Belongs at Home
https://www.nytimes.com/2026/06/16/business/chinese-investors-restrictions.html
Eager to keep capital within its borders, China is restricting the ways individuals can engage with global markets, our columnist writes. 

Human Intelligence versus Artificial Intelligence

Fareed Zakaria - 2026 Commencement Address at Bard College
https://youtu.be/w8e35VtDMF8?si=WYll1ixws83dVemn&t=205

AI Boom Goes Global

It’s Not Just Nvidia. The A.I. Boom Has Ignited Asia’s Chip Companies.
https://www.nytimes.com/2026/06/16/technology/taiwan-south-korea-ai-chips.html
They make much of the gear that goes into giant data centers. Demand for their products is shifting the balance of tech power. 

Equity Investing: End of an Era?

The era of pure passive investing is over by Stephanie Guild
https://www.reuters.com/commentary/reuters-open-interest/era-pure-passive-investing-is-over-2026-06-16/
For much of the past four decades, investing in equities seemed pretty simple. Interest rates trended lower, corporate taxes declined and globalization expanded. Those forces lifted valuations broadly, muting the consequences of individual company decisions. You just had to be invested. That time appears to be over. 

Rethinking Fed Communications

Kevin Warsh Wants the Fed to Stop Explaining Everything
https://www.wsj.com/economy/central-banking/fed-warsh-chair-communication-d2f2d226
For decades, the central bank believed talking openly made its policy work better. Its new chairman believes the opposite. 

The Fed Has Been Honest and Stupid
https://www.project-syndicate.org/commentary/how-the-fed-can-improve-itself-under-kevin-warsh-by-todd-g-buchholz-2026-06
It would be easy—and a mistake—to blame the US Federal Reserve’s many blunders on corrupt bureaucrats or imagined conspiracies. The truth of the matter is that the central bank relies on an outdated regional map and lagging indicators that no longer tell the whole story, while battling macroeconomic blazes that politicians stoke. 

Gold Repatriation

Central banks repatriate gold as global insecurity rises
https://www.ft.com/content/c7164737-2988-4f1c-aba4-244bda4844c7
Conflict, sanctions and decline in trust have made the institutions more cautious about storing bullion in other countries. 

Manchester's Economic Revival

Manchesterism is not socialism
https://www.newstatesman.com/politics/economy/2026/06/manchesterism-is-not-socialism
Andy Burnham’s city is a neoliberal metropolis.  

Manchester is a triumph of private enterprise
https://www.ft.com/content/87e4c899-5055-4a4d-841b-c7e9b0c319a6
‘Soft left’ Labour MPs backing Andy Burnham might have learned the wrong lessons from the city’s revival.

Adam Smith - Still Relevant?

What Can Adam Smith Teach Us Today?
https://youtu.be/9gqGixwERP0 

Mumbai's Changing Skyline

Mumbai’s Skyline Is Soaring. So Is the Pressure on Housing
https://www.bloomberg.com/news/features/2026-04-17/mumbai-s-skyline-rises-as-residents-and-bankers-jostle-for-space
As global businesses pour into India’s financial capital, millions of low-income residents face redevelopment deals that will determine whether they can stay. 

Related:

Livable Cities Are the Key to India’s Growth
https://www.project-syndicate.org/commentary/how-india-can-build-livable-cities-by-shishir-gupta-et-al-2026-05
India is urbanizing rapidly, but poor public services, weak local governance, and unregulated sprawl are impeding productivity growth. The solution lies in reforms that empower local governments, improve administrative efficiency, and strengthen coordination of city planning and infrastructure development.

Demand Side of the Oil Market

How China Can Move the Price of Oil Even by Not Buying
https://www.nytimes.com/2026/06/15/business/china-oil-iran.html 

Vancouver's Solution to Urban Housing Crisis

There is a Solution to the Housing Crisis, and One City Just Stumbled into It
https://www.nytimes.com/2026/06/15/opinion/vancouver-housing-crisis-development.html 

FT Masters in Finance 2026 Ranking

French business schools lead FT Masters in Finance 2026 ranking
https://www.ft.com/content/f628e3c6-dd61-4f83-99e3-fc0728d82d88
ESCP tops the table amid growing demand as graduates seek sanctuary from a tough job market. 

Smartphones and Declining Birth Rates

How iPhones became birth control
https://spectator.com/article/iphones-became-birth-control/ 

The Choice Is Not Babies or iPhones
https://www.nytimes.com/2026/06/18/opinion/iphones-birthrate-decline.html

Inequality in the Age of AI

Falling Wages and Surging Wall Street Wealth Drive Americans’ Unease Over Economy
https://www.nytimes.com/2026/06/13/business/economy-trillionaire-wealth-wages.html  
As Elon Musk became the world’s first trillionaire, workers are facing higher prices and fears of A.I.-driven job losses.  

China's Economic Future

China is innovative. Its economy is a mess. Which matters more?
https://www.economist.com/finance-and-economics/2026/06/08/china-is-innovative-its-economy-is-a-mess-which-matters-more
A question that will define the 21st century. 

UK's Economic Decline

How Britain Became as Poor as Mississippi
https://www.theatlantic.com/magazine/2026/07/uk-productivity-economy-reform-party/687303/
A case study in self-sabotage.
 
Related:
https://www.economist.com/britain/2026/06/09/britains-privatised-utilities-are-a-mess
https://www.economist.com/britain/2026/06/10/british-politicians-are-racing-to-the-hard-right 

Stock Market Capitalization to GDP Ratio

Is the US Stock Market Too Big?
https://www.project-syndicate.org/commentary/stock-market-valuations-out-of-step-global-gdp-distribution-by-jim-o-neill-2026-06
With China and India having grown so fast as to compensate for the underperformance of their fellow BRICS (Brazil, Russia, and South Africa), the center of gravity in the global economy continues to shift eastward. The question now is whether—and when—equity valuations will reflect this underlying reality.  

Prominent Economists on Growth and Development

PHILIPPE AGHION (co-recipient of 2025 Nobel Prize in Economics) interviewed by SIMON JOHNSON (co-recipient of 2024 Nobel Prize in Economics)
https://www.project-syndicate.org/onpoint/europe-economic-malaise-rooted-in-lack-of-dynamism-by-philippe-aghion-and-simon-johnson-2026-06
 
The Enduring Enigma of Economic Growth by Andres Velasco
https://www.project-syndicate.org/commentary/causes-of-economic-growth-still-not-understood-by-andres-velasco-2026-06
Developing countries have made enormous progress in many of the factors behind growth, reflected in stronger institutions, rising education levels, higher life expectancy, and increased investment rates. Yet income convergence with advanced economies has been painfully slow—and in most cases absent. 

Swiss Referendum on a Population Cap

No Vacancy
https://www.newyorker.com/magazine/2026/06/15/could-switzerland-become-the-first-country-to-limit-its-population
Amid Europe’s economic stagnation and demographic decline, Switzerland is booming. But the Swiss aren’t happy. They’ll soon vote on a proposal to cap the country’s population. 

Related:
https://www.wsj.com/world/europe/switzerlands-radical-proposal-on-immigration-cap-the-population-467967f5

Interview - Mariana Mazzucato

Mariana Mazzucato, rockstar economist
https://www.newstatesman.com/ns-interview/2026/06/mariana-mazzucato-rockstar-economist
Politics, tears and focaccia with Labour’s favorite public intellectual. 

China and the World Economy

Why It’s Nearly Impossible to Build a Robot Without China
https://www.nytimes.com/2026/06/11/business/china-robots-humanoid.html
Building on the country’s electric vehicle industry, Chinese companies are making robot parts at a scale and price point others can’t match. 
 
China Is Propping Up the World Economy by Importing a Lot Less Oil
https://www.wsj.com/business/energy-oil/china-is-propping-up-the-world-economy-by-importing-a-lot-less-oil-f12d7813
Clues are emerging in the mystery of the missing three million barrels—oil that China would normally be importing but isn’t now.

AI and Back Office Jobs

Forget Coders. The Real A.I. Threat Is in the Back Office.
https://www.nytimes.com/2026/06/10/business/economy/back-office-workers-ai.html
As artificial intelligence spreads, millions of middle-class jobs in human resources, billing and payroll could be at risk. Most are held by women.  

Effective Governance

The case for the administrative state
https://spectator.com/article/the-case-for-the-administrative-state/ 

UK’s Broken Asylum System

How Britain lost control
https://www.newstatesman.com/cover-story/2026/06/how-britain-lost-control
The UK’s asylum accommodation model has led to rioting and protests for two consecutive summers across Britain. Protesters direct their rage at the government, the council, police and asylum seekers. 

Challenges Facing UK and US Higher Education Systems

Let AI eat the universities
https://spectator.com/article/let-ai-eat-the-universities/

Eight Predictions for the Future of Higher Education
https://www.newyorker.com/news/fault-lines/eight-predictions-for-the-future-of-higher-education
The concurrent crises in the reading, writing, and math competencies of incoming college freshmen—which, I have begrudgingly accepted, are real, and not merely the familiar griping you hear in faculty lounges—will get worse, and within a few years a course that used to be appropriate for tenth graders will become the standard 200-level course in many universities across the country.
 
The false promise that sparked the student loans crisis
https://www.newstatesman.com/politics/education/2026/06/the-false-promise-that-sparked-the-student-loans-crisis
Turning students into “consumers” was always going to fuel perverse incentives.
 
Tarnished Towers
https://policyexchange.org.uk/publication/tarnished-towers/
Fixing England’s Broken Higher Education System. 

Dubai's Latest Test

Dubai Reinvented Itself. Now a War Is Testing Its Endurance.
https://www.nytimes.com/2026/06/09/business/dubai-economy-iran-war.html
As conflict ripples through the Persian Gulf, Dubai’s dependence on trade and travel has become an economic vulnerability.  

SpaceX IPO and the American Stock Market

Our Stock Market Is Broken by Aaron Zamost
https://www.nytimes.com/2026/06/08/opinion/spacex-ipo-stock-market.html
As part of its pitch to sell shares on the stock market, Elon Musk’s aerospace and technology company says it will capture over $28 trillion of the A.I. market (nearly the size of the entire United States economy). It says it plans to launch one million satellites to put data centers in outer space (though the technology doesn’t yet exist). And it vows to hand Mr. Musk huge amounts of stock if he establishes a Mars colony that houses one million people (though no human has been within about 35 million miles of the planet).
Mr. Musk could well believe his own projections. What’s harder to understand is why so many investors do, given his recent track record of missed deadlines, abandoned products and failed business predictions.
 
How Banks Are Using SpaceX to Woo the Superrich
https://www.nytimes.com/2026/06/08/business/spacex-ipo-banks-wealth-management.html
Wall Street is giving its richest clients velvet rope access to this week’s public listing of SpaceX, reflecting the growing importance of the wealth management business.  

Wall Street Is Rushing to Fund the AI Bonanza in Every Conceivable Way
https://www.wsj.com/finance/investing/global-stocks-markets-dow-news-06-08-2026-aac7c547
From giant debt deals to IPOs, tech companies keep raking in investor cash.

The A.I. Bubble Is Coming for Your Retirement Account
https://www.nytimes.com/2026/06/10/opinion/ai-ipo-openai-anthropic.html

South Korea's Booming Economy

Chips, ships and guns: South Korea booms on AI race and global conflict
https://www.ft.com/content/208d2ed8-78f3-471f-839a-55d69a3a8a9b
Asia’s fourth-largest economy is in a sweet spot as its biggest companies capitalize on geopolitical trends. 

Related:

The World’s Most Surprising Economic Success Story Is…North Korea
https://www.wsj.com/world/asia/north-korea-economy-success-e80f7062
Arms sales to Russia and goods from China provide a boost, despite sanctions. “The regime is wealthier than ever.”

The Real Skills Gap

The U.S. Needs Mechanics and Electricians. Big Business Is Spending to Create Some.
https://www.wsj.com/business/autos/the-u-s-needs-mechanics-and-electricians-big-business-is-spending-to-create-some-7ea1f06c
Bloomberg Philanthropies is launching a $90 million program that includes a partnership with Ford, which needs more mechanics at its dealerships. 

The Politicization of the American Economy

When Trump Jawbones the Market, Bet Against Him at Your Peril
https://www.wsj.com/economy/when-trump-jawbones-the-market-bet-against-him-at-your-peril-92825a3e
From oil to interest rates, the president has repeatedly moved markets in his direction. Whether that serves the economy is another question. 

The Trump Economy Is Bad News for Republicans
https://www.project-syndicate.org/commentary/trump-economy-bad-news-for-republicans-midterms-by-desmond-lachman-2026-06
Donald Trump triumphed in the 2024 election by continually hammering on the Biden administration’s dismal inflation record. If his party gets shellacked in this year’s midterm elections, it will be because he has made Americans even worse off. 

Skepticism Regarding Anthropic's Claims

Anthropic’s doom predictions are merely hype intended to make AI look important
https://www.telegraph.co.uk/news/2026/06/05/anthropics-ai-doom-predictions-hype-share-price/
We need to get more skeptical about Silicon Valley’s prophecies of global catastrophe. 

Rise of Columbus, Ohio

Central Ohio Becomes Hub for Tech and Manufacturing
https://www.nytimes.com/2026/06/05/business/ohio-tech-manufacturing-hub.html
Tech titans and Silicon Valley transplants changed the Columbus area, but not everyone is thrilled about the rapid transformation. 

The Fed's Next Move

Kevin Warsh’s Job Just Got a Lot More Complicated
https://www.wsj.com/economy/central-banking/kevin-warshs-job-just-got-a-lot-more-complicated-60b369f1
The labor-market rebound sets in motion a collision between the new Fed chair, the bond market and the White House.

4 surprising ways AI is making your life more expensive
https://www.washingtonpost.com/technology/2026/06/06/inflation-is-being-driven-up-by-huge-investment-artificial-intelligence/
These goods and services are getting more expensive due to spillover from massive tech company investments in artificial intelligence.

 

Related:
https://www.nytimes.com/article/what-to-know-about-the-jobs-report.html

https://www.wsj.com/economy/jobs/us-jobs-report-hiring-surge-why-4a372522 

When the Bubble Bursts

What to do with your money if the AI bubble bursts
https://www.telegraph.co.uk/business/2026/06/04/what-do-your-money-if-the-ai-bubble-bursts/
In a massive sell-off, the idea of preserving your capital is for the birds.

Carnage in Chip Stocks Hits Extra Hard in Top-Heavy Market
https://www.wsj.com/finance/stocks/carnage-in-chip-stocks-hits-extra-hard-in-top-heavy-market-7f0ea76a

Fears of rising interest rates collided with worries about artificial-intelligence spending, bringing an abrupt and painful end to weeks of gains. 

Italian Soccer

Why Has Italy Failed to Qualify for Three Straight World Cups?
https://www.newyorker.com/culture/the-lede/italy-has-failed-to-qualify-for-three-straight-world-cups-are-the-countrys-immigration-policies-to-blame
After winning the tournament in 2006, gli Azzurri have become a national embarrassment, and their failure has sparked a conversation in Italy over immigration policies and who gets to be a citizen. 

The Spike in Small Stocks

Small Stocks Are Trouncing Market Giants—and That’s Not a Good Sign
https://www.wsj.com/finance/stocks/small-stocks-are-trouncing-market-giantsand-thats-not-a-good-sign-ea06ebc1
When speculative small stocks win big, often it’s because investors aren’t thinking straight. 

Fresh Graduates and the Labor Market

A Job Market Leaving Young Graduates Behind Could Scar Them for Years
https://www.nytimes.com/2026/06/05/business/college-graduates-job-market.html
The labor market has improved but people entering the work force are having a harder time starting careers, a dynamic that has had permanent effects in the past.  

The Post-Arab Spring Era

World War III is here
https://www.newstatesman.com/international-politics/2026/06/world-war-iii-is-here
The Arab Spring was the spark that lit the fuse of a global conflict Europe cannot escape. 

Europe versus China

Europe’s Competitiveness Bogeyman
https://www.project-syndicate.org/commentary/protections-from-chinese-exports-will-not-restore-european-industrial-competitiveness-by-daniel-gros-2026-06
Calls for European leaders to protect domestic industry from "unfairly" subsidized Chinese competition have lately grown louder. But while tariffs might offer temporary relief to a few sectors, they cannot restore Europe's technological leadership, industrial dynamism, or export competitiveness. 

How the EU can respond to second ‘China Shock’
https://www.reuters.com/commentary/how-eu-can-respond-second-china-shock-2026-06-12/

The China Shock 2.0 could destroy Europe as we know it
https://www.telegraph.co.uk/business/2026/06/03/china-shock-2-destroy-europe-as-we-know-it/

Europe lacks a coherent strategy toward China
https://www.piie.com/blogs/realtime-economics/2026/europe-lacks-coherent-strategy-toward-china
 
Related:
Germany Has Lost What It Did Best
https://www.nytimes.com/2026/06/01/opinion/germany-economy-merz-trump.html

The Madman Theory

The Madman Strikes Back
https://foreignpolicy.com/2026/05/28/trump-madman-theory-iran/
Nixon’s theory on the power of unpredictability didn’t account for an actual madman adversary.

Tech and Inequality - China Edition

China’s high-tech rise is leaving much of the country behind
https://www.economist.com/china/2026/06/02/chinas-high-tech-rise-is-leaving-much-of-the-country-behind
That could make a starkly unequal country even more so. 

Demographic Shift in India

India’s surprise baby bust is a warning to the world
https://www.economist.com/leaders/2026/06/04/indias-surprise-baby-bust-is-a-warning-to-the-world
It is not just rich places that are becoming less fertile. 
 
India’s population will soon be falling—probably quite fast
https://www.economist.com/briefing/2026/06/04/indias-population-will-soon-be-falling-probably-quite-fast
Neither widespread poverty, nor high rates of marriage nor relatively young mothers are sustaining fertility. 

EM Equities: Winners and Losers

Indian stocks lose out to Asian rivals in global hunt for AI winners
https://www.ft.com/content/e0a198af-725a-4fa0-a9fe-72725163b4e6
Exchanges in Taiwan and South Korea have overtaken India’s in the past week as the two countries’ chipmakers surge. 

The Immigration Dilemma

Governments are scared of tackling the immigration dilemma
https://www.ft.com/content/c57b1cd1-923e-4fec-8884-9a93ffb67871
Rich economies need workers but their voters don’t like migrants. 

Martin Wolf interviews Lant Pritchett
https://www.ft.com/content/ba0cea22-e055-4715-9fc8-52fd0e367a66

Immigration is both essential and impossible
https://www.ft.com/content/811f1b29-af5f-404c-a3a0-b28c5db4dec0
The option of temporary worker contracts is not embraced by either side but it may be the solution
 
Economist Lant Pritchett:
https://lantpritchett.org/wp-content/uploads/2022/05/The-political-acceptability-of-temporary-labor-mobility-PAQ-revisions.pdf

Global Natural Gas Market: Too Much Concentration on the Supply-Side

The U.S.-Qatar Domination of Gas Left the World Dangerously Exposed
https://www.nytimes.com/2026/06/04/business/gas-supply-usa-qatar.html
Before the war, the global market for liquefied natural gas was increasingly commanded by just two countries, one of which has now been hobbled.  

Finfluencers

‘This Is Not Financial Advice’
https://www.noemamag.com/this-is-not-financial-advice/
How finfluencers prey on economic desperation. 

BOJ's FX Intervention

Japan may be 'in the money' in FX intervention
https://www.reuters.com/commentary/reuters-open-interest/japan-may-be-in-money-fx-intervention-2026-06-03/
The yen's slide back to 160 per dollar, only weeks after Japan's large-scale interventions to support the currency, has called into question the wisdom of such action. But viewed through a wider lens, Tokyo's strategy appears to be working. 

Can Europe Reduce Its Reliance on US Tech?

Europe Wants to Be Less Reliant on American Tech. Here’s Its Plan.
https://www.nytimes.com/2026/06/03/technology/european-union-tech-sovereignty.html
The 27-nation European Union outlined how it hopes to expand the region’s data centers, semiconductors and cloud computing capabilities.  

How Trump supercharged the EU’s tech independence push
https://www.politico.eu/article/europe-tech-sovereignty-donald-trump-us-dependence/
The U.S. president’s weaponization of European dependence on U.S. firms has changed the conversation in Brussels.

Russia Imports Workers from India

Putin’s solution to replace Russia’s vanishing workforce
https://www.telegraph.co.uk/business/2026/06/03/putin-turns-to-indians-replace-russias-vanishing-workforce/
As the Kremlin deploys troops to the front line, it is turning to India over a growing demographic crisis. 

DEI and Policing in UK

Student Murder Sparks Accusations U.K. Police Are Biased Against White Victims
https://www.wsj.com/world/uk/student-murder-sparks-accusations-u-k-police-are-biased-against-white-victims-e91f374f
A call to police claimed a man had been racially abused. In fact, the man was a killer with a cover story.

 
The ‘cult of diversity and inclusion’ at heart of Henry Nowak police force
https://www.telegraph.co.uk/news/2026/06/02/cult-diversity-inclusion-heart-henry-nowak-police-force/
 
Henry Nowak was failed in the last moments of his life – and then again by Britain’s disgraceful political class
https://www.theguardian.com/commentisfree/2026/jun/03/henry-nowak-britain-political-class-policing
 
This is not what Henry Nowak’s family wanted
https://www.newstatesman.com/politics/uk-politics/2026/06/this-is-not-what-henry-nowaks-family-wanted
Political point scoring won’t bring back the murdered 18-year-old. 

Stock Market and Economic Predictions

Want to know the future? Don’t trust the stock market
https://www.economist.com/finance-and-economics/2026/06/02/want-to-know-the-future-dont-trust-the-stockmarket
Share prices are buffeted by far more than just new information. 

Keynes on Uncertainty

Keynes for Our Times by Robert Skidelsky
https://www.imf.org/-/media/files/publications/fandd/article/2026/06/skidelsky.pdf
Keynes’s moral philosophy and embrace of uncertainty can guide economics, finance, and AI-driven markets today.
 
Keynes, Minsky and the Economics of Financial Uncertainty
https://www.fa-mag.com/news/keynes--minsky--and-the-economics-of-uncertainty-87188.html 

Unprepared for College

The University of California Needs the SAT Back
https://www.wsj.com/opinion/the-university-of-california-needs-the-sat-back-711afae7
Even the overwhelmingly liberal Berkeley faculty are fed up with the admission of unprepared students.
 
University of California Professors Are Begging Schools to Reinstate the SAT
https://www.wsj.com/us-news/education/university-california-sat-requirement-reinstate-c3e32712
Open letter cites ‘severe preparation deficits’ among incoming students. 

Seeking Alternatives to GDP

G.D.P. Is a Flawed Measure of Prosperity. Alternatives Are on the Way.
https://www.nytimes.com/2026/05/26/business/economy/gdp-united-nations-prosperity-measures.html
The United Nations has a new plan for weighing economic gains alongside health and environmental progress. But consensus is elusive.  

Gold versus US Treasurys

How gold overtook U.S. Treasurys as number one reserve asset
https://www.marketwatch.com/story/gold-is-an-awkward-asset-for-central-banks-to-hold-its-now-moved-ahead-of-u-s-debt-anyway-b06733d3

Gold overtakes US bonds as world’s favorite investment
https://www.telegraph.co.uk/business/2026/06/02/gold-overtakes-us-bonds-as-worlds-favourite-investment/
 
Foreign demand for American government debt is becoming much less reliable
https://www.economist.com/special-report/2026/06/01/foreign-demand-for-american-government-debt-is-becoming-much-less-reliable
A once-vital source of funding for the Treasury market is drying up. 

Impact of Trump Tariffs

Tariffs Two Biggest Losers? You And You Again
https://www.fa-mag.com/news/tariffs-two-biggest-losers--you-and-you-again-87225.html
It’s widely understood that the Trump administration’s ill-conceived decision back in April 2025 to impose broad “reciprocal” tariffs on U.S. imports from around the world, even on an island inhabited only by penguins, has made the goods that Americans buy more costly. Need new dishes? Those prices were up 15.4% in April from a year earlier. A men’s shirt? Up 7.7%. Some jewelry for a significant other? Up 16.1%. Accessories for your personal computer? Up 13.9%
Now that we have a year’s worth of data to analyze, we’re finding that the levies have had the opposite effect on the wages of U.S. workers, suppressing earnings growth and helping to explain why, more than ever, Americans say this economy isn’t working for them.   

Ricardo Hausmann on Venezuela

Harvard Economist Ricardo Hausmann:
https://www.project-syndicate.org/commentary/how-venezuela-became-a-business-opportunity-for-trump-and-maduro-allies-by-ricardo-hausmann-2026-06
Venezuela’s oil production is rising, yet its currency is depreciating, inflation is accelerating, and foreign exchange remains scarce. The disconnect reflects a political economy built on private dealmaking and a mutually beneficial alliance between ruling elites and US President Donald Trump’s acolytes. 

Related:

The Venezuelan Left that Fought U.S. Influence is Now at War with Itself
https://www.wsj.com/world/americas/the-venezuelan-left-that-fought-u-s-influence-is-now-at-war-with-itself-9a5174da
Acting President Delcy Rodriguez’s cooperation with Washington is exposing rare divisions inside the socialist movement that she rode to power.