Everyone look out, the banks have made their money so it’s time to dump on the poors again.
the banks only make money after the crash, when people can’t pay their loans.
then they have to find baggers for the property they seize, only if they cant flip those in time do they come out ahead
Investment banks and the primary equity market. They’ve already traded their long positions for shorts
“It’s a ‘good bubble’” - Bezos
It’s almost as if there’s an entire class of people who do this purposely, and walk away billions of dollars richer.
Gotta siphon up all the wealth and resources from the proles once every decade or so.
It’s almost as if the entire system is designed for this and cannot sustain itself otherwise… surely that’s not the case?
When there are 4 or 5 companies worth over a trillion dollars each, and those companies combine for 60% of the volume and value of the S&P and NASDAQ, and they are all in on ai, well…
Buy ammo, I guess.
No, buy puts.
Can you get money from a non existent economy?
Every market ever has crashed, but the world trudges on.
Removed by mod
Personally I’m more of the Mycenaean, let their places burn and make them taste bronze!
What to do with the casts when the molten bronze is poured down their throats?
I just want to jam a sword down their throats like the weird cousin of Vlad Types of Wallachia. What your describing is more Persian IMO.
Every market ever has crashed, but the world trudges on.
Ancient dinosaurian proverb
Isn’t it bigger than the subprime mortgage bubble by this point?
Substantially bigger, but that’s not the whole story. Subprime mortgages were interconnected to everything banks did. The AI bubble isn’t quite so connected in the same way.
Compare this to the Chinese property sector bubble. Around 2020/2021, there were a lot of stories about how China had created a huge bubble and was going to take down everyone when it popped. Instead, it just sorta fizzled out, at least from an outsiders perspective. China has usually kept away foreign investment in their real estate market (along with pretty much all their big companies). There just wasn’t that much fallout to be had outside of China. Tons of doom headlines popped up in Western media, but it was a nothingburger unless you were somehow embedded in the Chinese real estate market.
Let me be clear: the AI bubble popping will hurt. At this point, there’s no way out of it, and it needs to pop sooner rather than later. However, comparisons to the 2008 financial crisis don’t tell the whole story.
https://www.wheresyoured.at/the-case-against-generative-ai/
A good read for anyone who wants to read in detail on how fucked it is.
"Here’s Why This Is Bad
I dunno man, let’s start simple: $50 billion a quarter of data center funding is going into an industry that has less revenue than Genshin Impact. That feels pretty bad."
-My favorite quote from this blog post
this wrong, it’s 4X bigger than sub prime crash.
I want to everyone to think about this, because I am very old. I have lived through many bubble bursts, I have lived through the recession. I think the most adept comparison to AI is when companies got this idea to do outsourcing. They outsourced EVERYTHING. Call centers, data development, manufacturing. It didn’t work after a few years of the hype it came back to the US. We found equilibrium. Yes there is still some outsourcing but it’s more globalization. AI will have the same thing. It will probably hang on a few more years then things will shuffle back to humanity. The difference then is there were still minimum wage increases on a federal level and it does concern me that there hasn’t been since my youth. It was a regular normal thing in my youth.
This should not come as a surprise to anybody. Not because of AI specifically, but because this is how tech hype always works. The more hype the bigger the crash.
Can’t wait until we bail out most of silicon valley because they’re too big to fail.
The dotcom peak was over a massive number of companies that folded, here it’s pretty much just a few companies.
Now they may be talking about a lot of rich assholes that would be directly affected by the bubble bursting if they’re actual evangelists of hallucinating LLMs but I guess I don’t see that massive impacts that this AI BS has over the dotcom crash had where jobs were massively lost over a span of a few months.
