Andrew Ross Sorkin on Possible Recession and AI Bubble Worry

David Rubenstein: "Are we heading into a recession? Are we in reasonably good shape? What is your own view on the economy? As somebody who covers it and knows a lot of people who work in the economy."

Andrew Ross Sorkin: "So oftentimes that question is framed in the context of this book is of, are we about to go off the cliff and, you know, have another 1929? And my answer invariably, there is I don't think that we are about to have another crash of that magnitude. Do I think that we are, in a precarious moment that could end badly? Yes. I 100% believe that right now, given the run up, in values in the stock market, given the amount of borrowing, though, it's not nearly the levels in 1989 or even in 2008, that we are possibly due for a correction of sorts, and that the kind of investing that people have done I mean, look, there's a whole generation of people here since 2008 that have not seen what a crash looks like. And so sort of just the sort of carefulness with which people have invested and given all of the sort of new products that are now in the markets, prediction markets, everybody. I mean, there's a whole new sort of gambling economy that's taking place that invariably to me, will fall or will fail. At some point. I can't tell you, when."

I'm very excited by AI. But I think AI, you know, some people worry about a bust in AI. I mean, are we in an AI bubble? And whether it busts, that's one worry. I'm also as excited as I am. I'm worried about what happens if AI works. Because if AI have success, and it creates the kind of productivity that's needed, frankly, to support the kind of valuations for all of these companies. Invariably, that productivity. What does productivity means? It means we're going to have to grow at an extraordinary rate with a lot less cost. What's the cost? We're are the cost. So what does that mean to the underlying account?

SUNDAYAmerica's Book Club with Andrew Ross Sorkin 6pm ET on CSPAN

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