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[–] 74 points 3 weeks ago (9 children)

To be expected since none of these AI companies are turning profits.

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  • [–] 15 points 3 weeks ago (3 children)

    I don't know what the plan is. Double our electric bills, take our water, take our jobs, and expect everyone to pay monthly for your crappy generative AI that most people never asked for?

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  • [–] 2 points 3 weeks ago* (last edited 3 weeks ago)

    If the reward isn't money, it is control. This technology can automatically flag any public dissent, every unwelcome transaction, and with Flock & Co even where you go and who you might meet (outside of the fuckton of telemetry cars come with nowadays, but it's harder for 3-letter agencies to get their hands on that data)

    In the beginning, it was about money. They realized that this is probably not gonna happen since human labor is cheap. But for control, this stuff is epic. And in this use case, who the fuck cares about a hallucination or two? Being able to analyze the online presence of billions of people based on INTENT and not simply keywords is worth fucking gold for them.

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  • [–] 6 points 3 weeks ago (4 children)

    Nvidia is, but they spent it on the bubble

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  • [–] 40 points 3 weeks ago (1 child)

    This seems to be the proximate cause:

    The sell-off came after US data on Wednesday showed stateside inflation jumped to a higher-than-expected 3.7% in September, marking the fastest increase in prices since the consumer price index (CPI) rate hit a three-year peak of 4.2% in May.

    Fresh data on Thursday showing US producers increased their prices by 6.3% year on year in September – the sharpest rise since December 2022 – added to inflationary jitters.

    The figures have rattled investors who are now expecting fresh interest rate increases by the US Federal Reserve, with some punters pricing in another increase as soon as the end of the month.

    It seems that investors are worried AI debt will be even more difficult to pay off once the Fed jacks up interest rates

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  • [–] 46 points 3 weeks ago (2 children)
  • [–] 26 points 3 weeks ago* (last edited 3 weeks ago)

    Emotionally i am at this stage:

    7Fx6xwRcNBpwhNt.gif

    More! MORE! KEEP FIRING!!!!

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  • [–] 6 points 3 weeks ago

    Went to a shitty sales pitch at a bank the other day and the guy mentioned that we should decide and meet before Nov 1. He said there was meeting then.

    I asked what meeting (think Fed meeting or some kind of treasury report due out). The guy had no clue, then I realized it was because of the election and laughed at the fucking guy.

    On the way out he mentioned that we should move our stocks into cash before November. I think that might be what’s really happening, but it would also be a good excuse to hide the AI bubble burst.

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  • [–] 8 points 3 weeks ago (5 children)

    People have been predicting this for a long time. Is anyone buying puts?

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  • [–] 12 points 3 weeks ago (3 children)

    The market can stay irrational longer than you can fund a put.

    You can be right and still lose everything.

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  • [–] 2 points 2 weeks ago

    Why speak confidently about options when you clearly don't understand them? You don't put your entire net worth into a 0DTE.

    For those that know the bubble is going to pop, you can make a lot of money short-selling stocks. Use only a small portion of your portfolio to buy, choose options with longer expirations, and use spreads instead of naked puts.

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  • [–] 0 points 3 weeks ago

    Whether you believe the bubble is currently popping, will pop soon, or will eventually pop - there are strategies that will allow you to massively profit from your insight. You don't have to spend your entire net worth on a 0DTE.

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  • [–] 3 points 3 weeks ago (3 children)

    I'm an economics idiot. But doesn't general inflation reduce the burden of debt?

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  • [–] 3 points 3 weeks ago* (last edited 3 weeks ago)

    Yes, it reduces burden of debt, but it makes taking on new debt a lot more expensive, because interest rates are closely related to inflation.

    And if you have to pay back a debt (as you normally have to after a predetermined time), and have to refinance it by taking up new debt, now you might not be able to pay the now higher interest.

    So for the one who pays off his credit card debt, inflation is a good thing. For the company that used that credit to invest in something that will only bring revenue at a future point in time, this is a real fucking problem (this is what is happening in Russia currently btw. Bankruptcies are skyrocketing there because of the high inflation and the even higher interest rate - and stalling domestic spending - , and that rate is being artificially kept "low" to boot. There has been an intense power struggle between the russian central bank and the Kremlin this year. Look up Elvira Nabiullina's "disappearance" this June)

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  • [–] 2 points 3 weeks ago

    if you are the one owing money, yes; if you are the one who is supposed to receive money, it is not so great. i would assume the ones worrying about this are the ones who are supposed to be receiving money? i am also an economics idiot

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  • [–] 2 points 3 weeks ago

    I sold off all my stocks in tech last month. Bought them a year+ ago and made some good return off it. The risk (and potential) reward are getting too great for me.

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  • [–] 3 points 3 weeks ago

    The AI posters really make me laugh

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