So we agree. Poor/ middle class people only hold stocks for retirement. AI bubble popping has no effect on them. The are exactly as they were pre-AI bubble.

Only rich people care about the current stock values. Only rich people are scared of an AI bubble. Only rich people are attempting the “too big to fail” FUD. Big Tech are not banks. There is no knock on effect.

AWS have now had enough outages that any serious company has migration plans and redundancies. If Google fails then the infrastructure stays running even if the current shareholders lose their shirts. The employees that are needed to bring in cash will not lose their jobs.

Totally agree. But this thread was talking about what happens when the AI bubble pops.

But if AI pops then that doesn’t mean that people will stop buying things.

Very few people are employed by the AI industry. Most people’s income won’t change. Most people’s consumption won’t change.

35% of the S&P is made up of stocks in the top 7 US tech firms. The stock market is extremely skewed towards these 7 firms, and a large part of their current evaulation is made up from speculation of potential AI returns. When the bubble bursts, everyone who is invested in these firms will feel it.

This wasn’t always true. When the bubble bursts the S&P investors will revert back to a more realistic valuation. AI bursting won’t affect LLY, JPM, WMT, COST etc.

Nothing of value has been lost. People just have the wrong anchor points.

As I said, the top 10% of Americans make up 50% of consumption, can’t find a confirmation but I think that’s the highest in modern history.

These 10% are consuming their income, not their wealth. An AI stock crash will have little to no effect on their income. (Except for the small proportion actually employed in AI research).

They will loose their jobs, because the economy slowed down and nobody is buying anything and their jobs aren’t needed anymore

No.

The AI debt creation and investment is not of any benefit to the working class (except for a few construction workers). These data centers don’t create 1000s of jobs. Windsurf has 250 employees. Cursor has 30.

This AI bubble is not affecting general income, only assets. As it doesn’t hit income, it doesn’t hit consumption. Poor people earn and consume. They are asset poor.

A pop in the AI bubble will damage the billionaires, but not the poor.

Yep. People are charged the marginal cost of power generation. Everyone pays the price of the most expensive source of electricity. The market is rigged.

You are white knighting the poor to protect your own ass(ets).

Trickle down economics is bullshit

You are talking yourself into trickle down economics. There is now plenty of evidence that this isn’t true.

There is no need to protect rich people’s wealth so that the poor don’t suffer

Crypto had it’s black monday.

The fall may have been accelerated by portfolio insurance hedging (using computer-based models to buy or sell index futures in various stock market conditions) or a self-reinforcing contagion of fear

Algorithms and feedback loops gummed up all the crypto exchanges and liquidity disappeared.

The crypto tide went out and we all saw who wasn’t wearing any shorts.

Boo hoo. Rich people become less rich.

Apks can be invalidated after installation?

I’d like to hear if Carr has any additional reasoning than just money.

So long as there is no drinking or gambling, SA will support it.

Seems very similar to performing at the White House Correspondents Dinner

Exactly. It doesn’t matter too much what the app doesn’t. The fact it’s removed is the useful part.

So if this app canary has just died, what does that imply…?

It’s about as useful as a canary in a coal mine.

He bankrupted a casino, but still was paid millions to do so.

He will bankrupt the US, but is being paid billions to do so.

The shift will happen when the user can’t tell the difference.

The grocery store? Ehhhhhhhhh. Nah.

If my banks services were seamlessly replaced by a cheaper, faster crypto service then I would not complain.