AI 'Scare Trade' Rattles Markets as Experts Predict 'Ghost GDP' Crisis
A palpable sense of economic unease has gripped markets and corporate boardrooms as the long-theorized threat of artificial intelligence becomes an immediate reality. Dubbed the 'AI scare trade,' a significant sell-off has rippled through the stock market, impacting not just technology software firms but also spreading to sectors like real estate and trucking as investors reassess which industries are vulnerable to automation. Analysts note that while AI infrastructure companies are seeing investor favor, software and other sectors facing potential disruption are experiencing white-knuckle volatility, a trend that may not be over. This market turbulence coincides with stark warnings from financial experts about AI's long-term economic impact. A viral essay and subsequent analysis from James Van Geelen of Citrini Research predicts a 'Ghost GDP' crisis by 2028, where AI-driven job losses create a hollowed-out economy. In this scenario, national accounts appear inflated even as widespread unemployment, potentially exceeding 10%, takes hold, leading to a severe white-collar recession and a predicted 38% plunge in the S&P 500. The theoretical is rapidly becoming tangible, as companies like Jack Dorsey's Block announce thousands of layoffs attributed directly to AI advances. This aligns with studies from firms like Goldman Sachs, which estimated AI was already causing significant net job losses last year. The growing gap between the rapid pace of technological change and the slower adaptation of the broader economy is creating a 'whiplash' effect, forcing CEOs to make critical decisions about automation that could either safeguard their companies or accelerate the very 'betrayal' of the workforce that economists are warning against.
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The viral 'Ghost GDP' essay predicting a devastating AI doom loop is a warning to CEOs as they decide how much work to automate | Fortune
In today’s CEO Daily: Diane Brady ... “Ghost GDP” scenario from becoming reality. The big leadership story: There may be a Ghost in the future economy, but for now there’s ‘betrayal,’ says KPMG’s top economist. The markets: European markets drop as Trump’s tariffs take effect at 10%. Plus: All the news and watercooler ...
Investors have been favoring artificial intelligence (AI) infrastructure while pulling back from software (IGV), as US stocks (^DJI, ^IXIC, ^GSPC) navigate renewed volatility. Yahoo Finance Senior Reporter Ines Ferré chats with Market Domination host Josh Lipton about what's driving the AI ...
In today’s CEO Daily: Diane Brady ... “Ghost GDP” scenario from becoming reality. The big leadership story: There may be a Ghost in the future economy, but for now there’s ‘betrayal,’ says KPMG’s top economist. The markets: European markets drop as Trump’s tariffs take effect at 10%. Plus: All the news and watercooler ...
The AI Whiplash Report: Corporate Mandates, Ghost GDP, and the Race Against Time
From forced adoption policies at Accenture to a financial warning that AI could hollow out the economy by 2028, this episode covers the growing gap between how fast tech and the slow world around it.
Finance expert predicts a major crisis in 2028 — including the 'Ghost GDP' situation - Market Realist
James Van Geelen, founder of analysis firm Citrini Research, recently claimed that this will lead to a “ghost GDP” situation. What this means is that thanks to AI taking people’s jobs, national accounts will be inflated, as per a report in Fortune.
Jack Dorsey to cut 4,000 jobs due to AI advances at Square parent Block | Technology | The Guardian
Block’s layoffs speak to larger fears about job cuts driven by a growing use of AI. Goldman Sachs noted in February that the increasing pace of AI adoption could drive up unemployment this year, and estimated that the technology had already resulted in 5,000 to 10,000 monthly net job losses last year. A November study from the Massachusetts ...
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