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AI Investors Furious at Suggestion That There's an AI Bubble (futurism.com)
submitted 11 months ago by to c/fuck_ai@lemmy.world
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[–] 121 points 11 months ago (19 children)

No bailout for AI

Let's get ahead of this. Fraudsters should go to prison.

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  • [–] 66 points 11 months ago (13 children)

    If this bubble bursts while Trump is still in office, then they will absolutely bail them out. Fraud is the common denominator for all Trump's actions.

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  • [–] 14 points 11 months ago (2 children)

    I'm not sure government can. AI isn't a profitable company with a product that people want which has a short-term cash flow problem, AI is a money pit that will just burn up as much cash as you can pour in.

    If they hand AI firms a trillion dollars, they'll be back for another trillion next year.

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  • [–] 3 points 11 months ago

    Yeah. Automotive, insurance, and banking were industries when they collapsed in 08. They kept making bad calls (and automotive has continued to do so immediately after the government stopped forcing them not to), but the industries were bailed out because the consequences of not having them would be disastrous to the US economy.

    Unfortunately I do think a lot of the government feels not having AI dominance would be disastrous for the US economy so it could easily become a fight.

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  • [–] 1 point 11 months ago

    AI is worse than just unprofitable, it's basically a drain on our entire economy. Instead of money being invested into useful and productive sectors they're just lighting it on fire. Lighting another trillion dollars on fire with a bailout would just prolong the pain.

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  • [–] 16 points 11 months ago (7 children)

    dems would bail em out too, money printer Powell was in power under Bush and Obama...that's no accident.

    fact is the entire US economy is predicated on the idea our financial markets remain unregulated, so our country can act as easy exit liquidity for the rest of the world. That's been the underpinning of our entire economy since atleast the end of WW2

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  • [–] 2 points 11 months ago (6 children)

    Powell was appointed by Trump 1.0

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  • [–] 2 points 11 months ago (4 children)

    Powell was chosen by Obama too, might have misremembered Bush.

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  • [–] 1 point 11 months ago (3 children)

    He wasn't chair under Obama. Bernanke was. He was appointed by Bush and he was succeeded by Janet Yellen who Obama actually appointed.

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  • [–] 1 point 11 months ago* (last edited 11 months ago) (2 children)

    ...and the president doesnt set the chair, the point is republicans or neolibs are the ones who have chosen every person in the fed, they (the fed) have always had one goal and isnt "keeping inflation in-check" or "watching the health of job market", those two things aren't even remotely connected so ask yourself why/when that dual mandate came down and for what purpose it serves.

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  • [–] 1 point 11 months ago (1 child)

    The president absolutely appoints the Fed Chair

    https://en.wikipedia.org/wiki/Chair_of_the_Federal_Reserve

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  • [–] 1 point 11 months ago*

    huh, not sure how i got that one mixed up. wtf was i thinking of...maybe just the rate cut process, they all vote but the chair doesn't have sole power or anything.

    point is...their mandate is bullshit, they're not there to serve the american people. they're there to create volatility and keep the money printer going, nothing more or less

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  • [–] 11 points 11 months ago (4 children)

    To be clear, they're not fraudsters, exactly. They're hype men, and that's what stocks have been about for a while now. Who can hype their stock up the most.

    And AI has been hyped, globally, more than any other stock in the history of the world so far.

    The crash will happen, but it's not fraud. Not yet. They're playing a dangerous game of stock buybacks that led to the 2007-08 recession of the car companies originally.

    It will happen here again. Stock buybacks sound great, and they're legal, but using them like the major 5 investors into AI have been, while again isn't illegal, is extremely risky for the company as the majority of their shares are now held by themselves, instead of getting you know, outside investors like the whole of the stock market is supposed to work.

    It means there's no leverage and no diversification, so when the bubble pops, these companies that should have more on their balance sheets than just AI (like Microsoft, NVidia, and Oracle), will crater due to one part of their investment portfolio instead of just having a "setback".

    This could literally end major tech companies in the US overnight without a Government bailout, or socializing their companies with government takeovers (won't happen in this admin without it going into trump's pockets though).

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  • [–] 8 points 11 months ago* (3 children)

    Hype isn't fraud in itself, but I'm convinced there's also massive fraud. I'm not a financial law expert but there must be safeguards against scams like this. It will be apparent once the bubble pops.

    Leuke naam trouwens ;)

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  • [–] 6 points 11 months ago

    No doubt there is massive fraud. I just saw the article about the AI note-taking app startup guy who was jumping on calls himself and taking notes manually, providing those as the results of his "app". Somehow, I feel even he will get away with it.

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