Markets seem to be overlooking potential consequences of a Minsky moment, where investors could lose confidence in the US dollar, leading to a crisis. Despite recent tariff concerns, the Nasdaq has rebounded, supported by hints of tariff discussions with China. However, experts warn of possible supply chain disruptions affecting holiday retail. In AI news, Alphabet’s strong earnings emphasize that advancements in artificial intelligence may yet overshadow tariff worries, with significant developments such as robots achieving Turing Test benchmarks. Marvin Minsky predicted robots would inherit the earth peacefully, and current trends suggest this vision could become a reality. Predictions about an upcoming recession remain uncertain, with various experts offering differing views. Recent data indicates mixed trends, with supply shocks and changing retail prices in response to tariffs. While concern over foreign investment in the dollar was prevalent, evidence shows moderated foreign selling of US equities. Ultimately, fluctuations in investor sentiment and ongoing advancements in AI may shape economic outcomes in ways that are yet to be seen.

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