3 ms·
this is a big deal, markets gonna tank tomorrow morning... and then realize AI is still a thing and recover
by jshchnz 9mo ago
this is a big deal, markets gonna tank tomorrow morning... and then realize AI is still a thing and recover
- garbawarb 9mo agoOr realize it means interest rates are sure to be dropping.
- jgalt212 9mo agoand remind themselves there is way too much cash sloshing about for a broad-based and lasting market retreat. https://fred.stlouisfed.org/series/M2SL https://fred.stlouisfed.org/series/M2SL
- ajross 9mo agoAI is a bubble; well, the stock market as a whole is, being led by an AI boom. At the end of a bubble (and it's not clear if we're there yet) markets find ways to self-finance. A crash means not just that the value is lower, but that the leveraged bets are now due, and those have to be paid by selling more. When it crashes (and it's not clear when that will be), it will crash back to a cash-value baseline. And, sigh, it's not clear where that is. But it won't magically start going back up. The cyclic reinvestment engine needs to be reinvented every time.