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The AI bubble is 17 times the size of the dot-com frenzy — and four times the subprime bubble, analyst says (www.marketwatch.com)

submitted 19 hours ago by kingofras@lemmy.world to c/ausfinance@aussie.zone

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cross-posted from: https://lemmy.world/post/36846875

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[–] f1error@lemmy.world 2 points 17 hours ago (1 children)

Just how bad is it going to be when the bubble bursts? I hope I still have a home...

[–] Eyekaytee@aussie.zone 1 points 16 hours ago* (last edited 16 hours ago) (1 children)

well the good news is that you’ll probably keep your home, the ai bubble is almost entirely concentrated within super high value companies with shitloads of money

this isn’t like the dot com bubble which was mainly startups and isn’t like the financial crisis where people were gambling with obscenely huge debt risks

the biggest impact i’ve read is if the big tech companies stop spending money on ai and the bubble bursts so to speak the US immediately goes into recession because big tech is propping up the US economy at the moment

but this doesn’t mean much because the us should already be in recession

outside of that i don’t think the contagion will spread that far

[–] Bob_Robertson_IX@discuss.tchncs.de 3 points 16 hours ago (1 children)

big tech is propping up the US economy at the moment

Watching the market it is very clear that there's something very weird going on... no matter what's been happening over the past couple of months, the market keeps going up. The most obvious is when the US government shut down this week, the market kept going up.

[–] naught101@lemmy.world 4 points 13 hours ago

Minsky moment. It's a Jenga tower, 90% of the "value" in the stock market is hype.