[pojzon]

Thing is, people dont know what will happen if this bubble bursts.

Its so big that it could take with it whole global market.

There is no safe asset you can turn into in such a case, digital money would literally mean nothing when whole financial system collapses.

[skybrian]

This doesn't track with what happened after previous bubbles.

Investors will be sad, but businesses that still do useful work will still have revenue. Why would they be worthless?

[pojzon]

Previous bubble did not take global market with it. It was close to it, but it did not happen.

It just made possible next one worse x10.

Bailing out 2008 was a mistake. All of those banks were supposed to collapse.

Next burst will be a lot worse. Reason why China, Japan, Europe are all dumping their USD reserves.

Everyone is preparing for inevitable collapse of USD.

It will be devastating for the whole world. Hard to predict how bad tho.

[rubyn00bie]

That sort of crash is what central banks exist to protect against. That could be something like the Fed stepping in as a buyer of last resort and picking up several trillion dollars of equity, and/or pushing rates to zero again to incentivize private capital to more or less do the same.

A global crash of financial systems is unlikely because it’s cause too much pain for everyone. It unfortunately means we plebs are likely the ones paying to bail it out.

[int_19h]

I rather suspect that in the current economic climate, a trillion dollar bailout of Big Tech would very quickly translate to riots in the streets.