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Everyday AI looks more like the '08 housing bubble (lemmy.ca)

submitted 3 days ago by n7gifmdn@lemmy.ca to c/technology@lemmy.world

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[–] Knock_Knock_Lemmy_In@lemmy.world 1 points 2 days ago

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).