It’s not a bubble, it’s something way worse - “the reduction of the employee cost burden”
AI exists to allow wealth to access skill without allowing skill to access wealth.
Hyper-local renaissance is the only answer. Get to your village and out of the city while you still can.
The crash is going to be spectacular.
How will we crash if the White House controls the Fed? This is gonna be a different kind of financial catastrophe.
you can maintain make-believe “all good nothing to see here” for only so long until the reality becomes undeniable. given that cost of living crisis is already running roughshod through the economy - it’s not a good sign and it will get worse.
That’s what I’m saying, it’s probably not going to be a crash, just the cost of living crisis on steroids. My moneys still on mass hunger riots next year
Even last year I would’ve said “hold ya horses, pardner” but these days I think you’re onto something. The way big tech keeps on screwing everybody while other parts of the economy actively sink is concerning.
Double check your investments and be sure none of them are reliant on AI for future operative certainty.
Haha joke’s on you, I can’t afford to invest
Facts
As someone that has been through both of these crashes, 17 times the size of the .com bubble is really, really bad. I don’t think we can even conceive of how big a hole this is going to make.
don’t worry the military tech bubble will get it covered)
jokes aside - i’m working in consulting and lots of those AI startups are straight up money laundering operations that don’t really need neither market research nor talent pool studies - pretty much everything is for show and next to zero real longterm planning. A rude awakening is long overdue for these hotshots.
One time I had a misfortune to ask what one of these startups is going to do when their product will fail to gain traction (it was yet another grammar check sentence finishing app like Grammarly) - how are they gonna pivot and their CEO laughed at me and said “we are going to work hard to make it a success” which is like super stupid thing to say when your project is in the superoversaturated market affected by cost of living crisis with customer engagement on a consistent decrease for the last 3 years and your product costs almost the same as the market leader but is also way worse.
Ever since the 90’s, I’ve often wondered if some of these bubble companies are just the living end of the “eat the rich” philosophy. I can see no more practical a way to achieve this, than to convince investment capital to empty their wallets, funneling it straight into the pockets of dozens if not hundreds more people. It’s hardly Robin Hood, but it’s also cash that’s no longer hoarded at the top.
Plus, we also know that a worthwhile goal is to not go the distance, but simply become a tasty snack for a bigger company before you go bankrupt. This lets your flimsy business model and weak patent portfolio become someone else’s problem.
it is like that with a lot of Ukranian startups - hotshot all the way then sell off and it fucks shit up for others who actually want to turn their startups into a long-running expanding businesses.
Guys compare the size of American debts to Canada’s
I read through the non paywalled link and I couldn’t find any info on if this analysis adjusts for inflation or not. 17 times larger (before inflation possibly) seems so ripe for cherry picked data points in the name of sensationalism, that I wanted to confirm this one idea, and I didn’t. Did anyone else find anything like that?
Ever ask why there is so much yellow journalism around this subject? Who benefits and why so much effort? Lemmy acts like it’s totally normal because they agree with it. But r/the_donald would say the same about republican media’s headlines regarding immigration.
I think your line of thinking and reasoning about this is very flawed
How so. I think there are a lot of parallels between the two because they’re the same thing. It’s the same mechanism.
A genuine stock market collapse would be very interesting
It’s ok the stock market isn’t the economy and everyone will be fine would you like to open a few hundred wells Fargo chase CITIZENS accounts preloaded with the presidential collection of crypto including 500 newly minted “Barons” ?
The cool thing about inflation is it hides shitty stock market performance.
The greater the inflation, the more stocks and GDP go up!
The Chinese and Indians are watching what is happening and busting their guts out laughing.
AI: Actually Indians
All these built out data centers are going to be eye sores when they go bankrupt.
And yet, the MBAs continue to pump money into it like AI doesn’t fail to provide any value in 80% of their shoehorned implementations.
It’s wild how many good uses of this tech there are, and how it’s mostly implemented in asinine ways, instead. It’s great for brainstorming. Not so great for customer fucking service.
AI is taking customer service jobs by storm because 80% of the tasks they do are answering the same questions over and over for Grandma who can’t remember how to turn on the TeeVee.
I guess that’s true. Customer service has almost never been able to actually help me, even before.
If you get to a human who cares, they often can, but it’s even harder now that AI is in the picture.
The problem is when you’re part of the 20% who has an issue that isn’t solved by the basic help steps. It’s so damn frustrating to tell an AI multiple times that you need isn’t covered by the basic steps
I’m pretty sure the models are trained primarily by the help docs, rather than previous support incidents, which would explain the extreme insistence on performing basic support steps repeatedly
Everybody thinks they’ll be able to time their exits perfectly or near so, and it will be somebody else left holding the bag - in other words they’re ridding the bubble as high as it will take them but ready to jump off when it starts to wobble.
On past experience (having gone through 2 big crashes within the respective industries), the most professional of investors (such as Investment Banks) will probably manage it, the rest not so much, especially Retail Investors.
Well my brokerage made a bunch of income based restrictions on professional investment products. No short nasdaq futures for me
That kind of thing tends to be very common in the Finance Industry in my experience because of potential conflicts of interest and inside trading if one has access to non-public information around customer trade orders.
Generally you’re limited to trading the most common market traded assets (like stocks and bonds) and some of which has to be authorized or is limited in some order way (like trade orders having to be filled in advance), and most derivatives are generally out.
That said, personally I’m just using Gold as a safe haven for my savings and waiting for what I feel is an innevitable global economic crash. Granted, I’ve been doing it since the last Crash and only in the last 2 years has it really started moving up in terms of the larger currencies (USD, EUR) rather than sideways.
Might not be a highly leveraged as a derivative would be, but as a highly conservative way of just preserving one’s wealth it has worked fine for me.
Even then some of the professionals will get nuked as well, frankly speaking it’s the cautious, experienced, and old who will handle this best those who have seen the previous ones in some way be it with their own eyes or through history who will get out.
80?
I feel like that number is way over 90, 95
https://www.youtube.com/watch?v=VsE0BwQ3l8U&t=1492s
More of the same. I can’t wait to check out from society and specifically the tech world.
Next bubble gonna be 64× ?
Good one 😂
quite an upgrade from the 32 bits
Bubble scientists need to adjust for inflation.
And the fact that they are willing and ready to print more money
I’m curious about the sizes of nfts, crypto and blockchain compared to the ai bubble
The dotcom bubble produced Google and Amazon.
They survived it because of massive investments by wealthy venture capitalists and a strong foothold in their markets. They also came out of it with an eye toward dominance of those markets. Lean and mean doesn’t even begin to describe how awful these companies are. I don’t think we are going to enjoy the surviving AI companies that emerge from this particular bubble because they will be even more capitalistic in their intent to dominate every market.
That’s exactly what they are trying to do. Become bubble proof through pure size in order to be the dominant player after the pop.
I guess, if you count surviving it and having less competition. What did 2008 produce? Besides a stock reset for the rich.
2008 wasn’t the collapse of the dom com bubble. That happened in 2002 or so. What happened in 2008 was the inevitable collapse of the banking and loan industry due to oversaturation of sub prime mortgages and the use of them by hedge funds as a way to cheat to industry and make shit tons of money off the backs of working class people.
Yes. They were two different crashes, I wasn’t implying they were the same. If anything the tech bubble from mid 1990 to 2000 was more “honest”, it just wasn’t going to last yet everyone invested in it. Unlike the 2008 crash of real estate that the banks knew was a problem but ignored. Dotcom was tech, but 2008 was more like the current AI money run, in the methodology of pumping it for money until it breaks.
They received hundreds of billions of dollars in bailout funds. That really taught them a lesson!
Should have pulled themselves up by their bootstraps and saved for emergencies.
Maybe they ate less Avocado toast and that helped already.
It was a completely different world having several different search engines. Felt like you were actually on a discovery path. These days Google funnels you into Amazon products listings.
Yeah the one thign ai consistrntly does well is return more targeted search results than a browser.
WAAAAY back in the day, search engines functioned like a complicated Yellow Pages with indexed results and explorable categories. They encouraged you to find unique websites and seek out new perspectives and ideas. It wasn’t sustainable due to the volume of websites people make, but it was fun.
Search engines have been hot garbage for a while. If AI can at least shake that up, it would at least provide some competition and reason for these companues to try and innovate something.
Also Beanz.
Winner takes it all, we need to pump MORE money into it.
/s
