Economy/Market Update 5-25-2025

This is a quick update on the US economy and market. 

The fundamental problem is the debt of the US government [1,2]. The only way to get out of the hole is cutting expenses and growing the GDP at the same time [2]. The most recent stock market gyration was due to the unstable bond market. 

Some also related progress on AI. 

References: 

1. US Government Debt and Deficit 

2. *Ep47 “Is the U.S. National Debt Sustainable?” with Mohamed El-Erian (9-2024) 

3. The bond market is 'sounding the alarm' on U.S. and global fiscal situations, says Subadra Rajappa (5-24) 

4. *David Rubenstein: The bond market is worried economic weakness from rising debt (5-24) 

5. Bessent Sees Easing Capital Rule on Treasuries This Summer (Full) (5-24)

Related: 

1. Anthropic's Mike Krieger: Claude 4 'can now work for you for much longer' (5-24) 

2. Apple vs. OpenAI: Rosenblatt's Barton Crockett on the future of AI-powered devices (5-24) 

3. *Moving Apple iPhone production to the U.S. is a 'fairy tale', says Wedbush's Dan Ives (5-24) 

4. Cloudflare CEO on the rise of 'zero-click searches': much harder to be a content creator (5-24) 

5. IonQ CEO on the potential of quantum computing, the quantum trade and growth (5-24) 

6. JOSH BROWN says "It's a strange place we find ourselves in" (5-23) (bond, AI device, Apple, Google) 

7. Alex Kantrowitz: Silicon Valley is moving on the way of AI hardware (5-23) 

8. Apple's Tim Cook is a 'peacetime CEO', today was a 'shot across the bow', says Deepwater's Munster (5-23)

9. *'AI mode' answers questions Google wants to win users, Deepwater's Gene Munster (5-21)

10. *Big Tech's Alex Kantrowitz on Google: They're in reinvention mode (5-21)  

11. Mark Mahaney on Google I/O: Risk around Google Search has been greatly exaggerated (5-21)

12. 'TOTALLY UNFAIR': Kevin O'Leary warns of 'huge problem' with Trump's tax bill (5-21)

13. AI is more important than tariffs to the stock market, says Ritholtz's Josh Brown (5-21) 

14. Dan Ives on Tesla: This is a watershed moment for autonomy after hearing Elon Musk (5-21) 

15. *Major retailers in US likely to increase prices due to tariffs | The Hill (5-20) 

16. Bernstein's Stacy Rasgon on the biggest takeaways from Jensen Huang's visit to Taiwan (5-20)  

17. *Fiscal/ Debt Sustainability Issues And Implications For Monetary Policy (5-20)  

18. Trump Treasury chief issues new warning about Liberation Day tariffs (5-20)  

19. *Trading the downgrade of the U.S. credit rating (5-20)