AI 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.
garbawarb|1 month ago
jgalt212|1 month ago
https://fred.stlouisfed.org/series/M2SL
ajross|1 month ago
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.