cross-posted from: https://lemmy.ca/post/73158617
Burn baby burn!!!
“Many in the market feel we have no choice but for it to work out,”
Yes this is what it everyone feels like when they are in denial…
Yeah, I don’t know if “fear” is really the right word here… more like “anticipation”
Many are now asking whether this hyperscale approach — in which tech monopolies build massive, energy-intensive data centers to fuel AI demand — is a sustainable approach, compared to one which deploys efficient and lightweight models for a fraction of the cost.
For many investors at this point, the hyperscale approach simply has to work
If they just believe hard enough it will come true and it will be their Xmas miracle.
They’ve been pushing for the government to take a stake in AI companies so that when they go bankrupt it’s no longer a private sector issue and they can justify a bailout. I am strongly against the government or taxpayers being involved. The AI should stay completely private sector so that when they go bankrupt they get NO BAILOUTS.
The bubble is always Wall Street
If that bubble ever bursts i want more ethical AI models and approaches.
All we’re gonna see is bailouts, consolidation, and the rest of us lose our savings.
If we see that, we need to see gun ownership and armed protests rise.
Not if you start shorting now. Trust me, nothing can go wrong with a safe short.
1970s: Microwaves are the stoves of the future!
2010s: The Metaverse is the future!
2020s: AI is the future!
No one ever believed in the Metaverse except one very rich weirdo. Blockchain and cryptocurrencies were the 2010s’ really big hype wave.
Microwaves have been immensely successful though. In some countries >95% of all households have one. In the US they’re more common than cable TV ever was. They went through a boom in the 1980ies where that number shot up from 10%-ish to 80%-ish. If AI is like microwaves it’ll be considered essential in another 10 years.
microwaves are tools, but they are in no way a replacement for the stove.
If microwaves are the analogy for AI then I’m good with it. In my house today I have an oven, a stovetop, a counter top toaster oven/air fryer thingy, and a microwave. Each serves its own purpose but none replaces the other completely.
If in the future AI is a tool that sits and waits it’s turn for me to use it for the thing it is best at then I think it will have a place.
If instead it costs a subscription fee, is forced into every other appliance, replaces jobs en mass, and accelerates the downfall of the climate I’m gonna pass.
looks like AI is slowling leaking out from the cyst rather than bursting.
what are you guys making for dinner tonight?
Tuna salad sandwich with one regular slice of bread, one butt slice, from a bag I accidentally left open yesterday. I need to go shopping pretty bad…
I had sushi, it was wonderful. But my wonderful partner made 15 bean soup for the week and it came out so good. Andouille and Italian sausage and lots of pepper and tomato. Just perfect.
I’m not really seeing a bloodbath, S&P 500 still up more than 10% YTD.
If that is a bloodbath then what term are they going to use for an actual crash?
As the ponzi scheme gets larger, it becomes more sensitive to small changes.
The AI sector has suffered losses to the tune of 20-59% over the last month or so.
Yes some of them are still up YTD (some are even down YTD), but at the same time, the situation in 1929 was similarly less bad looking if you started from January of that year, but the graphs showing how bad it was in practice always start in September.
Sensational clickbait slop.
I sincerely hope that a few of the fascist tech bros get absolutely obliterated. If all of them were gone with the snapped of a finger the world would instantly be a better place.
If we have a revolution and round capitalist class up and arrest them the world will be instantly better
By ‘obliterated’ you mean ‘bailed out’ right?
I don’t think a bail out would work (which isn’t to say the Trump administration won’t try it - you can never confidently predict they won’t do something stupid). If they can’t work out how to make a profit after $2T of capex, more money on the furnace isn’t going to help.
As much as the bank bailouts after 2008 left a bad taste in my mouth, banks are at least self evidently a profitable business that were able to successfully use the bailout to stay afloat.
I could potentially see the AI companies’ creditors getting a bailout but most of them seem to be private equity so a bailout would be really unpopular (although see my above comments on not betting against the current US leadership doing something stupid).
On the bright side, there’s a real chance we could see Larry Ellison go personally bankrupt. He lives on loans secured against Oracle shares and Oracle is currently indebted up to its eyeballs and borrowing at basically junk rates. If it goes down, those loans get called and he eats shit (to the delight of Sun Microsystems fans everywhere).
you can never confidently predict they won’t do something stupid
I’d argue you can predict they will do something stupid because that’s basically all they’ve done ever since they took office
What would that mean for Skydance?
Ideally it all gets sold off to pay debts, but the funniest thing would be that its forcibly liquidated after creditors get to the copper sniffing crack head stage of debt repayment and the whole things gets torn apart.
The
20982008 crash was caused by the rate of mortgage growth beginning to slow. It was a confidence issue in MBS, similar to the AI bubble now. People are starting to lose confidence in their investments and wondering if it is still a good idea to buildout massive data centers.People have been feeling shaky about the market for years. It’s all built on unicorn farts and nothing makes sense anymore.
At least my portfolio is hedged by defensive stocks if the crash happens.
The 2098 crash was caused by the rate of mortgage growth beginning to slow. It was a confidence issue in MBS, similar to the AI bubble now>
I read that typo like a satire historical comment
Someone will falsely quote this post decades into the future as a prophecy for the crash of 2098.
I’ve added a reminder in my calendar for January 2098.
Lol like we’re going to have computers then. I’ll be happy if we get to keep indoor plumbing
Lol that’s why I quoted the original seconds after it was made. I’m no stranger to typos and spelling errors and the mocking that follows
I can’t wait to find out what’s gonna happen to my retirement money because of these absolute fuckers.
There are still 493 other companies.
I mean, you could have your retirement shift towards long-term bonds instead of stocks. Normally I’d suggest index funds too, but those are all tied up in the bubble right now. You don’t need to just sit there and watch your money evaporate.
I mean, you could have your retirement shift towards long-term bonds instead of stocks
With the rise in the Federal Fund rates, that poster would be screwed with bonds too, much worse in fact. Previously issue long term bonds are today worth a fraction of what they were earlier this year.
People won’t buy your old bonds (at their lower interest rates) when the US Treasury is issuing new ones right now with much higher yields. You can still hold the bonds to maturity to get all of your money back, but if you need to sell your bonds on the secondary market right now for cash to live on (presumably for those already in retirement) you’re going to take a sizable loss.
Gold is significantly down too. 17% decline in value year-to-date.
Residential real estate is down with the increase mortgage rates. Commercial real estate is in the toilet too since COVID really.
The stock market, even with this recent dip, is actually actually outperforming most other traditional investments. The good news for folks with retirement savings who are still working is that no value is actually lost until you sell you investments (stocks/bonds/gold/whatever). If you’re still a decade or more away from retirement thats a LONG time for a recover to bring back value from this current downturn.
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Aaaaand it’s gone.
The best we can do is retirement debt
Move it to something that isn’t as heavily invested in tech stocks?
You can and should be involved in what your retirement is invested in. If you’re concerned about this, you could move that money into something safer.
🎶 LET IT POP, LET IT POP, LET IT TOUCH A PRICK AND POP! 🎶
don’t stop i’m almost there
