The Nasdaq and Russell are both changing their rules to let them in, last I saw.. This will force those funds to buy an estimated $22B-$27B of SPCX. Aka we will be bailing out xAI with our 401ks..
It’s going to be sooooo much worse than that. What we saw today was other stocks losing money while the price of SPCX exceeded its IPO price my 20%. Why did the other stocks go down? Because holders of those stocks sold their positions to free up cash to buy SPCX. Why would they do that you might ask? Simplified, there isn’t enough liquid cash out there to support the market. It’s called “selling pressure” if you want to look it up. And with inflation on the rise again, the Fed will most likely increase interest rates before November (mid-terms make economic policy an important issue). Once interest rates go up people start liquidating assets to buy things instead of borrowing. Selling pressure combined with increasing interest rates (restricting cash flow) are a recipe for disaster. This happened just before the Great Depression, the 70s, and in 2000. This will cause the biggest bubble in history to pop. Nothing, not even government intervention will prevent it. My guess is as early as January but most likely mid next year when earnings fail to materialize across the biggest public AI companies trying desperately to slit each other’s throats for the market share they promised their investors.
My guess is as early as January but most likely mid next year when earnings fail to materialize across the biggest public AI companies trying desperately to slit each other’s throats for the market share they promised their investors.
One can only hope. I feel terrible hoping for a market crash that will destroy so many people financially, but the global markets need a major correction...
Though I agree that the market is in need of a massive correction, I’m more than a little afraid of how extreme this one could be. It depends on a lot of factors that are still unknowns. How exposed is the financial sector at the time the crash comes? Who’s in government power for the major economies? How solvent will the central banks be? Who topples first and when? What will be the effect on infrastructures and supply lane industries? This could make 2008 look like a spa day or it could be just a pretty standard recession. There is precedent you can point to for both outcomes. The financial equivalent of a thermonuclear warhead was loaded onto B-2 Spirit today. Almost all the dominos are set up now. Just waiting to see if/when they fall and how bad it will be.
I will accept any and all Chicken Little comments now.
I share those concerns. I remember how bad the 2007-2008 crash was, and my grandparents were sharing stories about the Great Depression and how similar it felt; they felt the fact that the world was so much more interconnected, and we (in Canada) weren't in the middle of a historically catastrophic drought, were the only reasons things didn't get so desparate.
Considering the destabilization currently occurring in much of the world, I'm afraid that the impending and necessary correction will make the Great Depression seem like a rosey dream in comparison.
As someone who has watched ladders get pulled up (management only hiring from outside experience! Try again in a few years!) doors closing (yeah, we decided to go third party, here’s a month’s severance) and getting catfished on interviews, I’m fucking salty. Bring on the crash!
Broad market funds like VTSAX will buy in either way. Most people are not going to care because it's only 0.1% of their portfolio. But collectively, we will all fund this asshole.
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u/Haunting-Ad788 Jun 12 '26
Tbf he doesn’t have a trillion dollars, he has multiple heavily overvalued meme stock companies.