The David Lin Report Stocks Tank, Unemployment Jumps: Will Markets Break In 2026? | Jim Bianco
Dec 18, 2025
Jim Bianco, President of Bianco Research and a leading market analyst, shares his insights on the current economic landscape. He warns of a Fed policy misstep with rate cuts amidst persistent inflation and discusses the limitations of funding for AI infrastructure to only the largest tech players. Jim critiques the traditional finance approach of cryptocurrencies and urges a shift towards decentralized finance. He also highlights substantial demand for precious metals from Asia, predicting a return environment of 4-6% for various assets.
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Debt-Financed AI Is Reaching A Limit
- Debt-financed AI expansion faces overbuilding risks and limited surviving players.
- Only a handful of firms can self-fund megaprojects, squeezing mid-sized players like Oracle.
Labor Weakness May Reflect Population Trends
- Recent payrolls roughly match near-zero population growth so low job creation can be 'normal.'
- Markets price this demographic reality, which mutes the expected recession signal from weak job prints.
Bonds Warn Of Persistent Inflation
- Bond market is signaling sticky inflation despite rate cuts and falling gas prices.
- Ten-year yields rose 50bps even as gasoline fell ~30% and the Fed cut 175bps, implying inflationary concerns dominate.