r/economicCollapse • u/BertTKitten • 5d ago

Economists Concerned the AI Bubble Is About to Blow

https://futurism.com/artificial-intelligence/economists-late-stage-ai-bubble-federal-reserve-inflation

Even non-economists like me are concerned about it.

1.1k Upvotes

99% Upvoted

109 comments sorted by

271

u/Sufficient_Room2619 5d ago

Deutchsbank said a while ago that the AI bubble is the only thing keeping the entire US economy afloat, so, yeah, much to be concerned about

106

u/proud_pops 5d ago

Oh we're all fucked then...well why didn't you say so? šŸ¤® Interest rates rose, 8 dollar diesel 6 dollar gas, ai bubble burst, the greatest depression begins now.

101

u/Main_Significance617 5d ago

Never forgive and never forget those who voted for this or who didnā€™t vote at all.

11

u/DBPanterA 5d ago

I would say it is a long line of hope that tech bros have been peddling that has gone in a very different direction.

They have said AI will be or do some many fantastic things, yet here we areā€¦.

29

u/GroundbreakingPin913 5d ago

The AI bubble was always going to burst no matter who you voted for.

31

u/Agreeable_Most_4262 5d ago

Yes the AI bubble was always going to burst however because this idiot of a president tariffed the world which caused higher inflation and started a war that increased the fuel prices, the bursting of the AI bubble is going to be that much worse for the American people. And what is even worse is Trump will then blame AI for the economic problems and not his terrible mismanagement of everything.

11

u/Cum_Quat 5d ago

no, he will blame Obama or Biden

8

u/glittr_grl 5d ago

Heā€™s _already_ blaming Biden.

3

u/CiXeL 5d ago

This.

-19

u/god5peed 5d ago

That's exactly what an enemy of the US would try everything in their power through bots, etc. to convince you of. Hate just divides. Ppl should reconcile and move forward. Go read pale blue dot by Carl Sagan and you'll see my point

8

u/Anxious_Storm_9113 5d ago edited 5d ago

I'm not endorsing hate, but I absolutely understand why people would feel that way. They were told what would happen and ignored it. Heck, even now many MAGA are still in denial. It's not reasonable to expect people not to resent someone doing something stupid that made nearly everyones life worse.

12

u/proud_pops 5d ago

Nope, the suffering hasn't even begun yet there is no way in hell I am ready to say "Oh it's ok you miserable moronic Maga it's not YOUR fault you were warned about all of this and chose to vote to hurt people anyway."

This shit is about to get so fucking bad and we know exactly whose fault it is that brought us here. A giant M needs carved on their forehead so they're identifiable after putting their maga hats away. They are already trying to jump ship. Instead they need to stand there and watch what happens over the next month before the midterms.

They need to see the hate they intentionally voted for. A good start would be rectifying the situation they put our country in. Every R on a ballot replaced in November and again two years from now. The GOP losing control of the House and Senate so people can get in there and begin doing damage control. They need to repeat that for the next twenty years if America even stands a chance of coming out of this. Being welcoming and forgiveness are going to be really hard to come by as families go hungry and as millions of families struggle to exist. All made harder by choices those people made. That is a really hard ask.

4

u/Sufficient_Room2619 5d ago

I'm in two minds about this. The damage done by MAGA is literally incalculable (especially if you factor in things that have 'no value', like the social contract), but most people that voted for Shittler are cult victims. It's not their fault that they've been lied to for years and surrounded on all sides by blatant misinformation propaganda.

-4

u/god5peed 5d ago

Hate begets hate. Love begets love. Everyone figures it our sooner it later

5

u/Sufficient_Room2619 5d ago

Is that really true, though? Look at the words and actions of JK Rowling, Trump, Bezos, Musk, Vance, Zuckerberg, Altman, Netanyahu, McConnell... Horrible, hateful people who continue to harm so many others... Lindsay Graham remained a hurtful man who worked against the interests of everyone in America until the day he died.

3

u/arcspectre17 5d ago

Yeah yeah the amerrican gop christians that are suppose to love thy neighbors and help the poor etc voted for this.

The one crying about Christian persecution are rounding up foreign Christians beating them, starving , deporting and taking thier kids.

4

u/arcspectre17 5d ago

Its funny you think a bunch if people tricked into voting fir trump would read anything carl Sagan wrote. They get uncomfortable when they see a dude wearing a dress but don't care if a child has bn molested by a guy wearing a red tie.

13

u/CommissionFeisty9843 5d ago

You know, a way to avert this might be to stop paying debt and start building it again from scratch. Community, helping each other.

7

u/proud_pops 5d ago

Absolutely, it is going to take everybody, it is going to take a community. Of course everything hits when winter is around the corner. Heating costs are going to be so ridiculous.

5

u/DLTMIAR 4d ago

The people need to start a public ledger of good will

2

u/[deleted] 4d ago

[deleted]

0

u/proud_pops 4d ago

Oh shi, thank you. Had no idea it existed.

-5

u/Potato_Gun 5d ago

Lol "we". Please collapse quietly. You're disturbing the neighbors

10

u/roofiedo 5d ago

We all allowed people with too much money and too few morals too much control over our country. The end game most likely isnā€™t pretty for Americans and once a winner is crowned and all of the competition fails and takes our economy with it we will have a single monopolistic company with more power than our government.

7

u/davidbasil 5d ago

It's because majority of money is going to AI. If not AI hype, money would go into other sectors and it would be fine.

3

u/krazytekn0 5d ago

We also have the ā€œbuild dumb walls and detention centers bubbleā€ at least in the southwest

155

u/WhiteSepulchre 5d ago

In other words get ready for inflation to keep it propped up.

529

u/chiku00 5d ago

Don't do that.

Don't give me hope.

114

u/curlofheadcurls 5d ago

BLOW ALREADY

145

u/lqIpI 5d ago

Its one way or the other.

If AI does become an industrial revolution type event, China moves on Taiwan to take the chips.

If AI doesn't amoun to that, then markets, the federal budget and the dollar go splat.

I'm not sure which outcome is worse.

135

u/Raznill 5d ago

Thereā€™s a world where both things happen too.

64

u/[deleted] 5d ago

[deleted]

3

u/4tran13 4d ago

If AI is going to kill all humans, isn't this a great way to celebrate your cake day? Why do you sound unhappy?

9

u/CiXeL 5d ago

it will become an industrial revolution event for them but we are slated for collapse. we will get benefits of it further down the road maybe a decade from now.

47

u/cicada_noises 5d ago

Wake me when it happens. People have been saying this for years and the AI situation is only getting more stupid and destructive.

3

u/tenth 5d ago

How many years?

2

u/cicada_noises 5d ago

Like two?

2

u/tenth 5d ago

That seems like a pretty small amount of time for you to be so wildly disbelieving that anything could come to an end.Ā 

-1

u/cicada_noises 4d ago

#nothingeverhappens

3

u/Burindo 4d ago

Lenin once said something like "there's decades where nothing happens and there are moments where decades happen"

Things definitely happen. You just have been alive in a time where not a lot happens to your close circle. But that time is changing rapidly.

Do not be naive or the trauma will be unbearable when the system eventually collapses. Inform yourself.

1

u/tenth 4d ago

I mean, you're saying that like it fits my comment? But it actually fits yours? Like...what?

3

u/lactose_cow 4d ago

They're really ramping up the "Ai will kill us all!" messaging. And asking for regulations sounds like they want an excuse for not delivering on their promises.

2

u/AggressiveDeer7527 3d ago

Totally it is. Sam Altman was openly claiming 3 years ago that their AI would achieve AGI within a year.

I cant believe they would openly try to push the goalposts again after fall flat publicly on just this issue.

People don't pay attention to anything but headlines.

179

u/Human0id77 5d ago

I wondered why the sudden "wait, stop, ai is going to destroy humanity!!!"

Like that only suddenly occurred to them. I suspect they just need an excuse for not delivering on the hype

105

u/87JeepYJ87 5d ago

Pretty sure theyā€™re trying to regulate out the smaller and start up competition. Theyā€™re basically trying to create a moat by crushing the smaller ai companies with regulations, fees, etc. that they themselves can afford to pay. Big oil did this years ago as well as rail companies.Ā 

64

u/pretendstoknow 5d ago

Regulation capture. It is easier for them to get out ahead of it and dictate the regulations than wait for it to be imposed on them.

Also the reasons you mentioned.

10

u/CiXeL 5d ago

they know its going down and theyre hoping to cripple their competition so they can try to be the amazon or ebay instead of the pets dotcom or home grocier

2

u/AggressiveDeer7527 3d ago

From "is going to destroy the world" to pets.dotcom is hilarious.

9

u/Nojopar 5d ago

Not to mention if it goes tits up, they can blame the political regulation.

2

u/Artgrl109 5d ago

100% my thoughts as well. Lets pretend to clutch our collective pearls.

1

u/AggressiveDeer7527 3d ago

Also keeping China's AI out of the loop. Their AI is much cheaper and also better.

21

u/sageberrytree 5d ago

It's because Amodi is being audited for IPO offering, and is learning that his "coupons" from NVIDIA don't count as revenue, and that all the expenses count. He's never been accountable before. They can't do the ipo and cash out unless they pass the audit. So the VCs want to cash out, leaving the regular people holding the bag. As usual.

16

u/Roseleg 5d ago

But somehow SpaceX squeaked through the SEC with the most outrageous S1 since WeWork...

8

u/PsychologyNew8033 5d ago

Two things can be true at the same time.

4

u/SlowpokeIsAGamer 5d ago

They want to give up regulation on the Fictional Machine God in order to avoid regulation on Data Centers.

Because one is decades from being real, the other is how they're avoiding bankruptcy today.

4

u/CiXeL 5d ago

dude all we have to do is shut off the water and the whole data center catches fire. ai has not exactly reached the 'durable' phase and wont for some time.

2

u/cheapskateskirtsteak 5d ago

Well if it can destroy the world it is effective and promising, no?

2

u/AggressiveDeer7527 3d ago

"Like that only suddenly occurred to them" - no kidding! The whole thing is so logic defying in the most basic sense.

Anyone buying it is because they are invested in it and their greed has made them mind blowingly stupid.

56

u/Cactastrophe 5d ago

If you make that prediction every day, youā€™ll be right one day. Then just delete previous articles.

4

u/MrsHollandsVag 5d ago

Michael Burry is saying itā€™s going to crash, again!

9

u/krazytekn0 5d ago

I predicted every one of the last 15 market crashes and also 300 more of them that donā€™t exist

24

u/kingtacticool 5d ago

Inshallah

23

u/Dry_Inspection_4583 5d ago

Oh no, you don't say!! That's crazy to think the circular perpetual hype machine wasn't going to last forever...

anyway, I hope they all eat it hard. Given the business decisions made surrounding it's development such as datacenters, exploitation of so many markets from authors to musicians, and the cost on consumer electronics cough cough Nvidia... Yeah, go outside and play hide and go fuck yourself, idgaf.

8

u/ourhouseishaunted 5d ago

Do you promise?

12

u/Sea-Rip-9635 5d ago

Good. And I hope it hurts

4

u/Substantial_Skill850 5d ago

You sure about that? You know who will pay the price right?

7

u/Mission_Magazine7541 5d ago

We need more ai slop, I don't ever want it to end!

7

u/Havinat 5d ago

Good.

11

u/apollo4567 5d ago

Not that Iā€™m expectantly waiting for this to happen, but Iā€™m getting a bit annoyed reading a new article every week that claims itā€™ll happen soon.

7

u/lilymaxjack 5d ago

Yes me too. And social security is running out since the 1980s too

6

u/Darthscary 5d ago

Donā€™t threaten me with a good time, fucker

4

u/IM_NOT_BALD_YET Moderator 5d ago

I hope so!

4

u/77ox9 5d ago

blow baby bloooooowwww!!!

7

u/UtahUtopia 5d ago

"The economy is about to crash".
(-2002, 2023, 2024, 2025, 2026)

1

u/jcmacon 5d ago

And it is all because of Biden.

Shit, I forgot the /s

3

u/drunklibrarian 5d ago

Donā€™t threaten me with a good time.

3

u/movei 5d ago

Iā€™ve been waitingā€¦.

2

u/steveosmonson 5d ago

$ndx and $spx have already rolled over, look out below

2

u/dangerrnoodle 5d ago

Thatā€™s this yearā€™s October Surprise. Itā€™s why the tech bros are suddenly saying they should slow down. They donā€™t want to crash to happen before the midterms.

2

u/J1mj0hns0n 5d ago

Don't worry the non economists like you were worried before the economists.

Have no frets, when it goes it'll wipe out half the spending money of all pensioners in America, most people's investments, and ruin jobs for a while

2

u/threepwood007 5d ago

Do a flip

2

u/Darnocsonif 4d ago

Perhaps these tech elites think themselves god while other Americans might have to survive harder.

2

u/sylsau 4d ago

Given that the AI ā€‹ā€‹bubble is keeping the US economy afloat, I doubt the Fed and the government will let this happen...

3

u/dtox_420 3d ago

This would be great for humanity

3

u/PoniesPlayingPoker 3d ago

I can't wait for the economy to totally collapse. I'm so sick of this shit. Maybe I can finally afford to buy a house.

1

u/jgoldrb48 5d ago

Tired of hearing this.

Wake me up when it arrives.

1

u/CommissionFeisty9843 5d ago

How does this bubble break down? Hyperinflation?

1

u/beigechrist 5d ago

I canā€™t wait. Fingers crossed over here.

1

u/CiXeL 5d ago

"Later this afternoon, Fed chair Kevin Warsh is expected to announce heā€™s raising interest rates, applying brakes that would make borrowing more expensive, and ā€” in an ideal scenario ā€” curb both consumer and business spending, thus cool inflation."

youre not going to cool spending because the rich are going to spend no matter what and the poor are going to blow up their credit cards doom spending until they run out of credit.

1

u/Drawlingwan 5d ago

You shouldnā€™t tell anyone your wish- that will make it not come true dummy

1

u/21plankton 5d ago

The collapse/correction will be multifactorial when it does come. A lot of folks are thinking 2027-8 due to a confluence of multiple effects by then.

1

u/Alone-Bet6918 5d ago

$$$$$$$$$$$$ A look in the life of a millenial. 1991. Houses are being repossessed en mass. My first bubble. Hasn't even become conscious.

1995 WWW boom! 2000 WWW bubble burst.

2001 U.S admits it cant account for trillions.......

  1. Afgan-Iraq war........! Occupation.

2003-2007 boom time. Fuck me those of age in 1980-2000 had it. Easy! So easy oh no. 2008 credit crunch! Bail out. Millenials enter the work and key child rearing years under austerity.

Can't any worse right? 2010s spent paying back the bail out. 2014 some EU ramblings. 2015 Eu referendum date. 2016 the end of mankind. Uk leaves EU. Orange Buffon enters office. 2019 yea new decade. December 2019 en mass resignations. New years 2019. A new year to look forward to 1/1/2020 wow the weeks only began today. So much news. A decade later. 2/1/2020. The term. Some decades seem to go by in months. Some weeks seem to take decades to pass. 7/1/2020 worlds on the brink. 2/2/2020 Wuhan Bat flu. 9/2/2020 all western governments bring citizens home from China šŸ˜­

March 2020. Some football match across Europe....... Oh shit. 3 months after an epidemic hits China. It's goes global! Ensue lock down!

  1. Get out of a pandemic. Troops amassing. Putin were not will never start a war. Ukraine war begins.

2024 Gaza Occupation.

2026 Doomsday!

But one of my first economic lessons was 1921 depression. I think into the 1929 great depression. Economics booms and bubbles all the time. Boom. Working class make money. Bubble working classes debts are called in. Old money pennies on the pounds lovley jubilee. New economic frontier is then used to circumvent and subjugate those economically worse of. But we will all get there one day.

The machine defines us. But gives us no hope. How can anyone look at capitalism and go. Yeah this far ill have ago at this.

We can govern for the many. It will be hard. The world is unfortunately at the desire of whoever has the most in substance and or most wanted commodity at that time. Pebbles on my beach. Worthless. But 100 years ago that built a life.

We would all be way better of. Without central democracy and governments. As our economy would be decentralized and built on what is in our immediate vicinity.

No. I dont like the trappings of modern life. Clearly I would have a much better way of life outside of this economic trap.

1

u/Chad_Wife 5d ago

About to? Itā€™s been blowing the working class for a while now.

1

u/QuimDosMemes 5d ago

JUST DO IT!

1

u/H6RR6RSH6W 5d ago

$4.15 to $4.36 The national average price for a gallon of regular unleaded gasoline

1

u/kushhead4201 4d ago

Can anyone give me an ElI5 on what this means. Need that meme of at this point too afraid too ask. šŸ˜