3 ms·

If one truly believes it's not in a bubble, then borrow and leverage an unlimited amount and bet the house & your family on creating a business with infinite gr

If one truly believes it's not in a bubble, then borrow and leverage an unlimited amount and bet the house & your family on creating a business with infinite growth and value. Don't know how to do your own prompts? Borrow and then hire others to do it for you. If those who you hire don't know, they can hire others too.* [* This is not financial advice. Please don't actually do this.]

dvt 1mo ago
You could make the converse argument, too: why don't you borrow and leverage and bet and short these AI companies, if you so vehemently think it's a bubble? The bottom line is that markets are complicated, useful technologies are often accompanied by bubbles, investors are not always rational, and people generally try to make the best decision with the information they have available. The answer is likely somewhere in the middle, but that's a lot more boring and a lot less inflammatory.
- generic92034 1mo ago
  > You could make the converse argument, too: why don't you borrow and leverage and bet and short these AI companies, if you so vehemently think it's a bubble? Because going long and going short are very different. For successfully shorting something you need to have a pretty precise estimate of when the crash will happen. Being a comparatively short time off can cost you everything.
  - Joel_Mckay 1mo ago
    Also, the volatility of leveraging positions often costs more than any gain over the long term. Most look forward to picking up the assets at a heavy discount. =3 https://www.youtube.com/watch?v=rE75WvOtcu8 https://www.youtube.com/watch?v=rE75WvOtcu8
  - retsibsi 1mo ago
    Yeah, but that applies to the argument in the original comment too. It's supposedly directed at someone who denies we're in an AI bubble, telling them to put their money where their mouth is. But then suddenly they're supposed to risk literally everything they have on "creating a business with infinite growth and value" before their "unlimited" leveraged loans are called in. Obviously there's some hyperbole there, and I'm not really sure what serious point was being made, but it does seem to depend on the anti-bubble guy having some very confident and specific beliefs...
    - generic92034 1mo ago
      My point was rather that it is an asymmetric situation from an investment perspective. I am not taking any sides regarding bubble or not.
- Joel_Mckay 1mo ago
  You mean for companies that make -$2.50 for every $1 of revenue, and bury their groups $2Tn debt in a footnote? It is not a question of if the bubble will go, but when... but you are right that Bears or Bulls always get it wrong predicting the future (if they are a legal investor.) https://www.youtube.com/watch?v=wTiYaWFP59Q https://www.youtube.com/watch?v=wTiYaWFP59Q Personally, Shrek movie release correlation with market corrections is funny, and a new film is due June 2027. Please hedge your bets with a diversified portfolio. =3
- anthonyrstevens 1mo ago
  Good point. There is too much inflammatory rhetoric on here about AI, too many opinions masquerading as facts, too much black-or-white thinking.
joha4270 1mo ago
While I do believe its a bubble, that seems like a silly viewpoint that presumes infinite risk tolerance.
- orwin 1mo ago
  Going long is not infinite, you only risk what you bet.
  - imtringued 1mo ago
    He said borrow with infinite leverage.

dvt 1mo ago

You could make the converse argument, too: why don't you borrow and leverage and bet and short these AI companies, if you so vehemently think it's a bubble? The bottom line is that markets are complicated, useful technologies are often accompanied by bubbles, investors are not always rational, and people generally try to make the best decision with the information they have available. The answer is likely somewhere in the middle, but that's a lot more boring and a lot less inflammatory.

generic92034 1mo ago
> You could make the converse argument, too: why don't you borrow and leverage and bet and short these AI companies, if you so vehemently think it's a bubble? Because going long and going short are very different. For successfully shorting something you need to have a pretty precise estimate of when the crash will happen. Being a comparatively short time off can cost you everything.
- Joel_Mckay 1mo ago
  Also, the volatility of leveraging positions often costs more than any gain over the long term. Most look forward to picking up the assets at a heavy discount. =3 https://www.youtube.com/watch?v=rE75WvOtcu8 https://www.youtube.com/watch?v=rE75WvOtcu8
- retsibsi 1mo ago
  Yeah, but that applies to the argument in the original comment too. It's supposedly directed at someone who denies we're in an AI bubble, telling them to put their money where their mouth is. But then suddenly they're supposed to risk literally everything they have on "creating a business with infinite growth and value" before their "unlimited" leveraged loans are called in. Obviously there's some hyperbole there, and I'm not really sure what serious point was being made, but it does seem to depend on the anti-bubble guy having some very confident and specific beliefs...
  - generic92034 1mo ago
    My point was rather that it is an asymmetric situation from an investment perspective. I am not taking any sides regarding bubble or not.
Joel_Mckay 1mo ago
You mean for companies that make -$2.50 for every $1 of revenue, and bury their groups $2Tn debt in a footnote? It is not a question of if the bubble will go, but when... but you are right that Bears or Bulls always get it wrong predicting the future (if they are a legal investor.) https://www.youtube.com/watch?v=wTiYaWFP59Q https://www.youtube.com/watch?v=wTiYaWFP59Q Personally, Shrek movie release correlation with market corrections is funny, and a new film is due June 2027. Please hedge your bets with a diversified portfolio. =3
anthonyrstevens 1mo ago
Good point. There is too much inflammatory rhetoric on here about AI, too many opinions masquerading as facts, too much black-or-white thinking.

joha4270 1mo ago

While I do believe its a bubble, that seems like a silly viewpoint that presumes infinite risk tolerance.

orwin 1mo ago
Going long is not infinite, you only risk what you bet.
- imtringued 1mo ago
  He said borrow with infinite leverage.