"We have a 2000s housing bubble level of financial engineering on top of a 1920s level of private unregulated lending on top of something bigger than a 1990s internet (or 1870s railroad) level of technology and infrastructure build-out." prospect.org/2025/11/19/a...
It’s not just OpenAI that looks overhyped. There’s a whole mountain of sketchy financial engineering underneath.
One thing that really drives me nuts about the rich is their money is all fake
It’s a matter of time
When this AI bubble bursts, a lot of people are going to be hurt & not just the greedy investors. This is no different than the 👇 dot. com bubble 1996-2000 Housing bubble 2002-2006 Corp Debt bubble 2010-? Crypto bubble 2016-2017 Everything bubble 2020-2021 Crypto bubble 2025-? AI bubble 2025-?
Doing all of America’s worst depressions all at once is one way of achieving full communism, I guess.
Railroads were useful though
It feels like all of this is the Calvin and Hobbes escalation comic and we're all just the old man trying to light his stove.
Hate knowing I can do nothing in the face of all this but try and brace myself.
it isn’t responsible to present it this way. It could be bad, but it’s just not true to present the AI bubble bursting as an unequivocal global scouring.
So it's good news?
A pedantic point I have to make: “hype” comes from hyperbole, which means an exaggerated statement or claim. Therefore, it’s redundant to say that something is “overhyped.” The exaggeration or excessiveness is already signaled by “hype.”
May the bubble pop ASAP, accomplishing two things at once. First and most important, triggering the depression we've earned, not a mere recession. Second, ending the absurd demand increase on the grid that it causes.
Wait, I'm not following the size claims?
The comparisons Ive seen have AI as much smaller than railroads/internet.
Or is this looking at it unadjusted (vs share of GDP?).
“The build-out of computing power for AI needs about $2 trillion in annual revenue by the end of the decade to justify the investment. It’s an insane amount of money, nobody has it—nobody may ever have it—so everything being constructed now, …GPUs…data centers…energy, needs some creative financing.”
Great article. Lays it out very clear. Love to read stuff about the economy and quietly whisper to myself "oh my fucking god" every couple minutes
And an 1890s level of pure government corruption.
is that good
A very well written and interesting article that adds another threat to the growing list of worries that includes: the destruction of our economy, the destruction of our healthcare system, the destruction of rule of law, and the destruction of the environment. I'm getting numb.
Burry was on housing and dot .com
This here just isn't true? The aggressive refresh schedules for GPUs was more of a signal of maintaining cutting edge relevance, not depreciation. We run our GPUs 24/7 and are getting 5 years out of them - demand for replacement is for features not because of hardware failures.
Where is fdr!
So what you're saying is: buy, buy, buy?
One hell of a game of musical chairs.
AND the drain on our energy sources
So what you’re saying is that the global economy is about to do a HARD reset.
The billionaire class is an existential threat to democracy and the GOP are an impediment to any progress on Climate Change. For the sake of the future let it all burn to the ground
were business owners in positions of the government pre-depression like they are now?
This mess is so unbelievably ugly and insane. Wouldn't you like to be a prepper too?
So, when it blows, it's going to blow big?
America, same as she ever was
Learning these hard truths as I age. Gone, the blissful unawareness of youth
Destroying dept of ed makes sense now. So much easier to control when dumb and desperate
Grateful I got to live my prime in that brief window of peak women's rights.
Let AI BURST!!
SELLING BUILIDINGS THAT HAVE NOT BEEN CONSTRUCTED YET FOR DECADES. WHEN THE SHIT HITS THE FAN, THEY BUILD HOUSING WHERE WINDOWS FALL OUT OF THE BUILDINGS AND CONCRETE ALSO!!!
IT COULD BE WORSE. WE COULD BE CHINA AND HAVE ITS SOON TO BURST HOUSING COLLAPSE! DUBED "THE WORLD'S LATGEST PONZI SCHEME"!!!
Sure hope this all has a measurable ROI!
Investment Advisers Act of 1940 regulates private credit's direct lending.
