The latest from John Wilder at Wilder, Wealthy & Wise is "What Does A Bubble Look Like?" John discusses why he thinks we are looking at another investment bubble, but one that goes far beyond prior bubbles such as the housing bubble or the dotcom bubble. An excerpt:
I could go on for another three thousand words about how frothy we are at this moment in time, but this time really is different. Most of this bubble is built on debt to build things that are impossible to build in promised timelines using resources that aren’t available. At least when the dotcom bubble burst, we had lots of unused fiber optic cable in the ground and when the housing bubble burst, we had houses left over.
What happens when a debt bubble bursts that hasn’t built the data centers it promised and evaporates a huge percentage of the venture capital that was sunk into it and all we have left are mountains of Nvidia© chips sitting in warehouses surrounded by confused pimps?
Well, that’s just another way that A.I. will change the world, I guess.
Read the whole thing.
More on this subject next week, likely. There are some ominous bits as well. As if this wasn't bad enough.
ReplyDeleteLooking forward to it.
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