Most Asian stock indexes are higher, tracking gains after a turbulent session on Wall Street. U.S. futures were little changed and oil prices advanced early Thursday.
      • bacon_pdp@lemmy.world
        26·
        7 days ago

        It is a bet that the US government can’t afford to cover. It would cost trillions to cover it and even if they went to a 100% tax rate, they still couldn’t cover it

        • Bakkoda@sh.itjust.worksEnglish
          2·
          1 day ago

          How about a 1 trillion dollar crypto coin as collateral? It’s actually a picture of a monkey peeing in its own mouth.

        • lectricleopard@lemmy.world
          17·
          7 days ago

          I dont mean theyll cover they whole s&p investment. Key holders of large quantities of certain stocks will be given assistance.

          You or I could buy up a whole bunch and theyll just laugh at us while they sign the check the Sam amd his buddies.

          • bacon_pdp@lemmy.world
            3·
            6 days ago

            I think it would be more narrow, just the billionaires would get bailed out and everyone else would get wiped out

        • Aceticon@lemmy.dbzer0.comEnglish
          6·
          6 days ago

          Worry not, 350 millions Americans stand ready - willing or otherwise - to save the Finance Industry by enduring some more Austerity, losing some more income in real terms due to unacknowledged inflation following another bout of money printing and suffering the consequence of more cuts to whatever is left of public services in America.

          An worry not, if there’s one thing that unwaveringly unites Republicans and Democrats, it’s this.

      • Zotora@programming.dev
        11·
        7 days ago

        Too big to save.

        The ammount of money in these companies for AI (4.5B 3.9T for Micosoft alone) is too much for even the US to bail them out.

        Edit: Double checked the number – I was off by 3 orders of magnitude because these numbers are just dumb.

        • TeamAssimilation@infosec.pub
          2·
          6 days ago
          • “Help me Uncle Sam! I’m broke”
          • “Best I can do is cover commodities, material, and payroll expenses”

          Well, one can dream.

      • Ilixtze@lemmy.mlEnglish
        7·
        7 days ago

        There is only so much the infinite money glitch can cover. The US is already trillions in debt, and the American taxpayers shouldering that debt are in an increasingly precarious position.

    • GreenShimada@lemmy.world
      121·
      6 days ago

      If you didn’t read the article, the concern is that mid-sized banks have done a lot of lending to outsized customers who have screwed them, and the market is taking this traditional indicator of a traditional bubble, with all the same dynamics as 2008, as a signal of market instability.

      The AI circular economy is not entirely over-leveraged debt. Over-leveraged debt is a very traditional form of economic trouble, so it’s more clearly seen as “oooh, we got some shit going down here!”

    • Aceticon@lemmy.dbzer0.comEnglish
      7·
      6 days ago

      The combination of two bubbles - overindebtness and banking overextending on loans, mainly via unregulated second-hand car loaning companies AND the AI one - blowing at the same time (or one blowing and causing the other to also blow as a consequence) is the really scary stuff:

      It would basically be a smaller version of the 2008 Finance Industry Crash TOGETHER with a larger version of the 2000 Tech Crash.

    • WalrusDragonOnABike [they/them]@reddthat.com
      10·
      7 days ago

      Crashes can precipitate from small points of failure that are intertwined with bigger investments. The market is like a powder keg with people wanting to keep money in as far up as possible and wanting to pull out to avoid being the bigger loser holding the bag, so it makes sense people will look into points of critical failure where such starts.

      • Aceticon@lemmy.dbzer0.comEnglish
        5·
        6 days ago

        Judging by last time around, shit will spread from “bad industries” to the rest as the money necessary to cover the bad bets gets pulled out from saner investments.

        This time around as there are at least 2 “oh shit!” bubbles (AI and unregulated car loans) plus quite a lot of smaller bubbles (such as realestate), the risk is that after any of the big bubbles explodes, via mechanisms such as the one I describe above the other big one is triggered and explodes next and then that in turn blows a bunch of the smaller ones.

        Imagine the chaos after the various over-indebtness bubbles blow (not just car loans, but also things like the highest level of credit card debt since 2007), the AI bubble blows and the realestate bubble blows.