3 ms·
Regular swings of +/-0.5 trillion in market value for an entity that is a material fraction of the entire market are not normal, in either mathematical or collo
by openrisk 2y ago
Regular swings of +/-0.5 trillion in market value for an entity that is a material fraction of the entire market are not normal, in either mathematical or colloquial sense. The question is, what do they really reveal about the condition (risk appetite) of markets.
> too many investors have been bidding up prices of firms related to AI without properly knowing the details of how it functions or is able to succeed
There is no investment without risk. The question is why are there so many investors that appear to be grossly insensitive to gargantuan levels of risk. And the answer is probably: its all funny money to them. We live in the era of 100K bitcoin after all.
- woah 2y agoIn your opinion, what "money" is not "funny"? Land? Gold?
- openrisk 2y agoAnything that works as money is bootstraped as a value token within society. "Serious" money simply reflects a serious society: transparent books, reliable social contracts, diversified undertakings, resilient people and nature, truthful and lawful character, stable and boring. Money that reflects real economic exchanges rather than speculation. The inverse attributes produce funny money: obfuscation, debasement, double books, smoke and mirrors, exploitation, captured institutions, subversion of the law and rampant speculation. There is no easy way to good money. No secret sauce. The entire society must be behind its value.
- deleted 2y ago[deleted]