https://en.wikipedia.org/wiki/Betteridge%27s_law_of_headline...
And an alarmingly large number of things in financial world are starting to look shaky. I he A.I. bubble might tip it over
I imagine, if the AI opulencia actually massively over-payed for their toys, there is probably no recovering. In time, before the tech becomes obsolete, I see no application on the horizon, except for the one thing even worse than AI: crypto. So, a push for crypto, fitted to these GPUs, may be the signal to brace for impact. The music stops, billionaires eat the last chair, and all we get is tough love and a new aesthetic:
Hypepunk, the dawn of Silicon Gothic.
austin-cheney•1d ago
A bubble bursts when debt obligations exceed the ability to maintain that debt for multiple parties simultaneously, which results in a collapsing debt spiral.
It is challenging to tell when the collapse is close and even once it has started. Because it is challenging to predict the moment of burst the best course of action is to limit exposure by transferring the high risk obligations to someone else before everyone else rushes to do the same.
runlaszlorun•1d ago
Is this true? Not challenging this but hadn't heard bubbles tied to debt instead of market prices on equity or similar valuations.
austin-cheney•1d ago
The more debt you carry the more leveraged you become, which is exposure to risk. Another way to think of that is brittleness, which is subject to breaking. Investments are forms of debt, money locked into a financial vehicle.