I’d agree, except it’ll ripple out to innocent regular people as well, just like the 2008 Great Recession, if not worse.
When regular people lose a lot of money, the richest get richer or are largely unaffected.
When the super rich lose enough money to actually hurt them, their interconnectedness with and control of everything that regular people need to survive means that millions if not billions of people will suffer immensely, up to and including dying because of it.
Why would it be worse? The investment money from this is coming from PE and venture capital.
AI is not a foundation of our economy like the housing market. There will be externalities that affect stuff like investment from these VC firms, and some peoples’ portfolios will take a hit. But this should not cause some massive issue like 08 did.
Our current stock market is being propped up by AI investments. When the stock market does well, regular people see no benefit, but when the stock market does poorly, it becomes everyone’s problem.
Lots of retirement funds are tied up in Wall Street, so when the bubble bursts, the immediate effect will be old folks who wanna retire will be unable to. The longer term effect will come from corpos who invested heavily into AI trying salvage some money by firing a bunch of people. The even longer term effects will come from the government bailing out the companies that are “Too Big To Fail”, which will of course necessitate cuts to social programs.
I’m sure you’ve heard of The Magnificent Seven? The seven most profitable stocks which just happen to be tech companies heavily invested in AI are the only companies doing big growth right now. The stock market without those seven is anemic, reflecting how the US has had hardly any growth outside the AI circle jerk. Unfortunately, the USA has been acting like the illusionary AI growth is widespread, so when those checks come back to be cashed, the rest of us will suffer.
Because most of the regulations put in place since the Great Depression and most social safety nets have been dismantled.
2009 was no egalitarian utopia by any measure, but the vulnerable are MUCH more vulnerable now as the regulations and organizations that existed to help people in need have largely been dismantled.
To name just one example, food banks are already being stretch beyond capacity NOW and there’ll be much more need for them when the bubble burst and people start losing their jobs to cover rich people’s losses.
AI is not a foundation of our economy like the housing market
Not inherently, no, but they’re trying to force it to become one. Haven’t you noticed how they’re basically trying to replace everything with it?
Apart from how they’re trying to replace as many workers with LLMs as they possibly can, companies like nvidia (now the most valuable company in the world on paper) have all but abandoned consumer products in order to immediately sell more product to data centers than they’ll be able to produce in several years if not decades.
And it’s not just them, all GPUs, RAM, storage, etc capability is being aimed at satisfy the few AI loons that are empowered by temporarily unlimited funds and burdened by hardly any regulations and safety rails.
They have unlimited power, absolute impunity, and no caution. That combination didn’t work out well for regular people when it was Wall Street in 1929, and it sure as hell won’t when THIS bubble bursts either.
I’d agree, except it’ll ripple out to innocent regular people as well, just like the 2008 Great Recession, if not worse.
When regular people lose a lot of money, the richest get richer or are largely unaffected.
When the super rich lose enough money to actually hurt them, their interconnectedness with and control of everything that regular people need to survive means that millions if not billions of people will suffer immensely, up to and including dying because of it.
Why would it be worse? The investment money from this is coming from PE and venture capital.
AI is not a foundation of our economy like the housing market. There will be externalities that affect stuff like investment from these VC firms, and some peoples’ portfolios will take a hit. But this should not cause some massive issue like 08 did.
Our current stock market is being propped up by AI investments. When the stock market does well, regular people see no benefit, but when the stock market does poorly, it becomes everyone’s problem.
Lots of retirement funds are tied up in Wall Street, so when the bubble bursts, the immediate effect will be old folks who wanna retire will be unable to. The longer term effect will come from corpos who invested heavily into AI trying salvage some money by firing a bunch of people. The even longer term effects will come from the government bailing out the companies that are “Too Big To Fail”, which will of course necessitate cuts to social programs.
I’m sure you’ve heard of The Magnificent Seven? The seven most profitable stocks which just happen to be tech companies heavily invested in AI are the only companies doing big growth right now. The stock market without those seven is anemic, reflecting how the US has had hardly any growth outside the AI circle jerk. Unfortunately, the USA has been acting like the illusionary AI growth is widespread, so when those checks come back to be cashed, the rest of us will suffer.
Because most of the regulations put in place since the Great Depression and most social safety nets have been dismantled.
2009 was no egalitarian utopia by any measure, but the vulnerable are MUCH more vulnerable now as the regulations and organizations that existed to help people in need have largely been dismantled.
To name just one example, food banks are already being stretch beyond capacity NOW and there’ll be much more need for them when the bubble burst and people start losing their jobs to cover rich people’s losses.
Not inherently, no, but they’re trying to force it to become one. Haven’t you noticed how they’re basically trying to replace everything with it?
Apart from how they’re trying to replace as many workers with LLMs as they possibly can, companies like nvidia (now the most valuable company in the world on paper) have all but abandoned consumer products in order to immediately sell more product to data centers than they’ll be able to produce in several years if not decades.
And it’s not just them, all GPUs, RAM, storage, etc capability is being aimed at satisfy the few AI loons that are empowered by temporarily unlimited funds and burdened by hardly any regulations and safety rails.
They have unlimited power, absolute impunity, and no caution. That combination didn’t work out well for regular people when it was Wall Street in 1929, and it sure as hell won’t when THIS bubble bursts either.