AI investment has helped keep markets and economic growth ticking along, but the IMF fears the boom could quickly turn to bust if the promised profits fail to materialize. With tech giants borrowing billions and investors piling into the same handful of companies, a selloff could leave more than just Silicon Valley nursing a hangover.
thats rich coming from the IMF.
Yeah the “business” tycoons do that every decade or so. Some busts are bigger than others. Not much any of us can do about it unless we tax the hell out of corps and wealthy so that they can’t build enough self serving shit to then dump the economy once they’ve scraped as much money as they can in the current cycle.
I’m convinced at this point the goal is to just not use money. Why do we have to be tied to this shitty fiat currency that isn’t directly tied to physical worth?
DUH. The Great Depression of 1929, and it took the world economy, and it fomented into World War.
if the promised profits fail to materialize.
What profits? Nobody has money to spend and llm companies lose money on $200/mo subscriptions.
COVID took the global economy with it.
Losing AI would be like… I don’t even know, insignificantly small compared to that.
If AI up and disappeared tomorrow when I clocked into work, it might actually make my job easier. I could be even more productive without having the slop floodgates open every day.
Then we riot.
The economy isnt going anywhere its just going into a recession again, nothing you havent seen before if you were born before the Bush administration.
Buffett Index: total stock valuation vs. GDP
1928: 130%
2007: 130%
2025: 220%
Now guess where most of that stock growth and GDP came from? I’ll give ya three guesses, but you’re only going to need one.
unexpectedly good churro sales?
The Legend of the Whopperito™?
Yeah, well I warned them, but did they listen?
Good.
Could???
Find out by tuning into the next season of The Economy!
Burn it all down!!! Shits not sustainable nor stable for 90% of the world population!!! Burn it all down, tech dweebs!
If so, the technobros did this. The technobros should receive most of the consequences. There should be dire consequences but we all know who will receive most of that. The system is broken.
Sorry. The techbros will get bailouts. Its the pensioners that will starve.
*Techbros
in a sane world. in this world, where the system is working as intended, tech bros will reap rewards at our expense. hopefully the working class response will be of a scale commensurate with the scale of the injustice.
I’ll stand with you! ✊
Remembet that they don’t have the money to do it. It’s also investors to blame.
Oh absolutely, investors doing no due diligence on their part is complicity.
TBH I don’t see how it could take anything with it. The money invested will still exist except for interest on loans and unrealized gains which don’t actually exist because of overvaluation.
This isnt like the mortgage crisis. Anybody who gets fucked over by this crash deserves it.
2 exceptions to what you said.
- Whatever money raised through IPOs and other public investment is mostly the general public’s saving accounts. So far it’s just $80bn in the SpaceX IPO and $40bn from the bond issue they did shortly after.
- Just like the mortgage crisis it’s the banks holding the debt that’s been issued. Now since 2008 they were meant to firewall between their retail banking arms and their investment arms so that if they fucked up again the retail banks were safe. However this legislation got repealed in the US, so we could be looking at a bank bailout again to make sure the banking system doesn’t collapse with everybody’s money in it.
The money loaned still exists, you’re right. Trouble is it’s not in the AI companies anymore. It’s been spent. It’s gone through them out to other companies (like Nvidia, MS Azure, AWS, Google Cloud, etc).
“Greedy shitbag tech bros pushed it. Greedy shitbag investors threw every penny at it. So whoops, the whole world is held hostage. Sorry fuckos, you, John and Jane public, are going to pay to save the global economy. Greedy fucksticks aren’t allowed to lose.”
…can’t wait.
