alt Hacker News> What do you think "demand cooled" means if not increased unemployment
Gross private domestic investment contributed more to output growth than personal consumption expenditure in two out of the last three quarters [1].
Reduce marginal investment, e.g. by raising the cost of borrowing for folks building datacenters, and you that demand goes away without any major shock to current employment.
[1] https://apps.bea.gov/iTable/?reqid=19&step=2&isuri=1&categor...
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overfeed • today at 5:08 PM
> e.g. by raising the cost of borrowing for folks building datacenters, and you that demand goes away without any major shock to current employment
Cue companies like Microsoft and Oracle laying off even more workers to make room for the higher AI budgets.
Why would it go away? Plenty of institutional investors are cash rich and they do very well with high interest rates.