I feel like all these circular investments and no return investments that keep propping up the stock of AI and technology manufacturers are going to cause an absolutely massive crash in the next few years because it is so insanely detached from reality, they keep investing even though none of them even make a profit right now.

Do you think it will cause a massive economical crisis in the next few years and if yes, when do you think it will happen? I was hoping maybe there is a comrade here that has a bit more insight into this topic than me

  • fox [comrade/them]@hexbear.net
    link
    fedilink
    English
    arrow-up
    11
    ·
    5 days ago

    We can all be well aware that the line is going up due to finance fuckery, including the investors, but that doesn’t matter so long as the line keeps going up. Alan Greenspan warned of the dotcom bubble’s irrational exuberance. If you bought into the bubble on that day, you’d still have come out ahead if you sold at the crash’s lowest low. The investors don’t care that it’s a bubble, they know it’s a bubble. They only care about their net worth going up. If they get 4% from the bonds market and 4.1% from detonating the global economy, you know exactly what their plan is.

    Anyways, the real deadline is somewhere in 2027 when the money runs out. You can shuffle paper deals around all you want but at the end of the day someone needs to pay cash for GPUs and data centers, and AI can’t do it. Too expensive, massively negative profit margins. Every real dollar spent is thrown into the money pit and burned. In 2027, there will be no more liquidity left to invest in any sector, anywhere. No bank investments, no private equity, no venture capital. All spent on AI

    • stink@lemmygrad.ml
      link
      fedilink
      English
      arrow-up
      3
      ·
      4 days ago

      My goal is to build a house so I pay my neighbor $$$ to build it for me but he doesn’t wanna do it so he pays his cousin $$ to do it but he doesn’t wanna do it so he pays me $ to do it and then I pay my neighbor ¢¢¢ to build it for me but he doesn’t wanna do it so he