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Why would you be nervous? If valuations collapse then what practical impact would that have? Are you a shareholder?
by nradov 2y ago
Why would you be nervous? If valuations collapse then what practical impact would that have? Are you a shareholder?
- paxys 2y agoAt this point the AI bubble is very tightly linked with the tech industry and the overall US economy. If/when it bursts we are all going to be affected, whether we are directly invested into it or not.
- ncallaway 2y agoWhen the dotcom bubble burst, it affected far more people than just the shareholders and employees of those specific companies. The economy is interlinked, and a bubble bursting hurts many people. Part of it is realizing the pains of inefficient allocation of capital. A bubble "bursting" is often an indicator that the capital in within that bubble had been previously misallocated. So the broader pain when the bubble bursts, is partly society and the markets suddenly discovering that the $3.5B probably could've been put to better, more productive uses.
- benrutter 2y agoA few other comments have already said this, but I was thinking that a "bubble burst" or "market correction" would really not be a good thing for the IT sector. It'd directly cause a bunch of unemployment, and additional spook investment out of other areas.
- nradov 2y agoThe investments just move on to the next hot area. It would be a temporary disruption at most.