The Plutonomy—AI Edition—and the Coming Crisis
Driven by speculative finance, stagnant wages, and AI hype, today’s tech-heavy economy mirrors the fragile plutonomy that collapsed into the Great Crash of 1929.
According to the latest report by the Mortgage Bankers Association (MBA), 1.35 million homes were in foreclosure in the third quarter of the year, a jump of 73% over a year earlier. Three percent of all homes are now in foreclosure, and another 7% of homeowners are behind on their payments.
With 10% of homeowners now either in foreclosure or behind on their mortgages, unemployment spiking upwards and the recession deepening, the MBA predicts that the number of troubled mortgages will increase, including a larger share of Prime as well as Subprime mortgages.
Read next
The AI Safety War in My Back Yard
In the contest between Micah Lasher and “AI guy” Alex Bores, is Bores a wolf in sheep’s clothing?
Assessing Bidenomics
Is the Biden administration’s economic policy a break with neoliberal orthodoxy, or more of the same?