Geopolitical Economy Report Huge bubbles in AI & US stock market grow, while real economy is in recession
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Oct 21, 2025 The podcast delves into the stark divide in the U.S. economy, where bubbles in the stock market and AI thrive while many states face recession. It discusses how the wealthiest 10% drive consumer spending and notes warning signs of a potential crisis if these bubbles burst. Insights reveal that a handful of tech giants dominate market growth, yet most AI investments yield poor results. The talk contrasts the financial boom with stagnation in the real economy, highlighting risks that could lead to wider economic instability.
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Two Separate U.S. Economies
- The U.S. economy is bifurcated into a booming financial/tech sector for the rich and a stagnating real economy for most people.
- The richest 10% now drive nearly half of all spending, concentrating growth in elite-dominated states.
Historic Stock Market Bubble
- The Buffett indicator shows U.S. stock market value is over 219% of GDP, the largest gap on record.
- This extreme valuation means the stock market bubble now far exceeds past peaks like 2000 and 2007.
Ownership Is Concentrated At The Top
- Stock ownership is highly concentrated: the top 1% own half of all stocks and the top 10% hold nearly 90%.
- The bottom 50% of Americans own just 1% of stocks, amplifying inequality from market gains.