AI is a bubble
| But here's the thing.
The money they're borrowing has to come from somewhere.
It's coming from private credit firms, pension funds, retirement accounts. Your 401k. Your parent's retirement.
And those mid-level firms jumped into the lending game because yields were supposedly high. Easy money, they thought.
Now they're stuck.
They can't stop lending or their own balance sheets collapse.
Everyone is LOCKED in a borrowing frenzy that no one can quit.
| And THIS is why the stock market looks "fine."
The market isn't measuring actual profit or value.
It's measuring the BORROWING that's propping this up.
Every time a company announces another $500B AI investment, the stock goes up. But that's not growth. That's the debt fueling this being repackaged and sold to the public as optimism.
But the stock market is being propped up BY the borrowing.
| So what breaks it? Cash flow.
If consumers don't spend (like say, a weak Black Friday), retailers don't get cash. They can't pay their debts. Banks tighten credit. Companies can't roll their loans.
The borrowing stops.
And everything it was propping up comes down.
And this is INEVITABLE.
All the layoffs, the low wages, the system squeezing the bottom 90% means the cash WILL cease at some point.
We are close to the edge now.
| This is why the stock market is the LAST thing to crash, not the first.
Everything underneath is already cracking.
✔ Private credit firms gating redemptions
✔ $42B in corporate bonds downgraded to junk
✔ Housing sellers pulling listins to avoid losses
✔ Consumer dept at record highs
✔ Subprime stress at 2019 levels (likely worse, but unreported)
And AI can't be scaled in time on the current grid to be profitable.
The foundation is gone.
The scoreboard just hasn't updated yet.
| So when you see headlines saying "defaults expected to rise NEXT YEAR", understand what that means.
IT'S ALREADY HAPPENING.
They're just telling you it's still "coming" so they can maneuver first.
By the time the numbers "officially" confirm it, the people with access got out.
| Good! It’s ridiculous people have an expectation to not work and get money from others’ just because they worked in the past and are crippled by age now, and companies which waste money deserve to fail. It’s important though that the companies are most punished. I have an index fund which will take a big hit but bounce back within 10 years. If they do get away with damaging the economy and making money they should be shot privately. Do any countries have laws against this behavior?
| I love Russians! Today I learn the letter Я! It means ‘ya’! I like to get Vitamin c from healthy yam! I also like how you wrote a lot, even if we disagree, it’s honorable to want to fight those stealing by having money and power which does not benefit society! But you should agree with me so we can kiss! Please say Яес; D
| >>1078593
Typical uneducated ruzzian to bot even know how pensions work. This toxic shitposter never seem to understand any of the posts she responds to. Annoying fuck.
| not*
| >>1078613
Yeh, it's a troll. Has to be. He always shows up to derail any thread about real issues with his inane nonsense and off-topic toxic positivity.(Yes, toxic positivity is a thing. Look it up.)
Anyway, the AI bubble will eventually burst which will trigger yet anotber worldwide economic depression that everyone but the richest will feel.
| >>1078613
Yeh, it's a troll. Has to be. He always shows up to derail any thread about real issues with his inane nonsense and off-topic toxic positivity.(Yes, toxic positivity is a thing. Look it up.)
Anyway, the AI bubble will eventually burst which will trigger yet anotber worldwide economic depression that everyone but the richest will feel.
| Like all technological development in our beloved global capital system, the only purpose of "AI" is to distribute wealth from the bottom to the top. The technology is nothing but another, different kind automation thanks to big data and statistic models compared to the more mechanical, deterministic rule-based systems we had so far. It will cost jobs. But at the same time there is also a massive amount of wrong promises and expectations under the marketing buzzword "AI".
Refresh
| Companies borrowed tons of money to build AI.
But AI doesn't make profit yet. It loses about $14 billion a year (at least). So they borrowed MORE money just to pay off the first loans. Then they borrow MORE to keep scaling and servicing the previous loans.
If they stop borrowing, it all collapses IMMEDIATELY.
So they CAN'T stop borrowing.