Oil goes up = interest rates go up.
Financing loans gets even harder.
AI CEO goes ‘I need another eleventy hundred billion dollars to keep stealing the sum wealth of human labour and selling it back to idiots because my incredibly valuable industry is still 4 years away from being anywhere close to profitable’
Investors say ‘I literally cant’.
AI goes pop.
crosses fingers
Historically, the big bubbles have lasted approximately five years before the bubble pops in spectacular fashion, and we’re in year four. On the one hand, it’s a little fascinating how this isn’t the 1900’s or 1800’s and the AI boom seems to be following the same script. That said, no one can predict the future and we’ve seen the US government make three trillion appear out of thin air overnight just six years ago, so this is at least a little different and one has to make the best decisions for oneself regarding the bubble.
I personally have a portion of my investments set aside in cash right now, because buying into oil stocks at 90% off in March 2020 (which historically drop precipitously in a bubble pop because people cut out travel straightaway) and then waiting two years made me enough to pay off my student loans and put a down payment on my home. Not ‘fuck you’ money, but life-changing. I have the patience to do it again.
Everything go pop. Inflation is about to take off in a way nobody is prepared for and I think AI will be the least of anybody’s concern.
I’m not sure how things are holding on as it is.
