Wilder's latest piece is "If You Can’t Spot The Sucker At The Table . . . ." And when it comes to investing in the stock market, equities markets, etc., we--the common people--are the suckers. Wilder discusses several of the markets and investments that are legal scams, so be sure to reach the whole thing. One example is his discussion of investments in AI companies:
Nobody actually requires pension funds to buy speculative A.I. bets. But when the benchmark rate that the fund is trying to replicate is the S&P 500©, over half of that index is now A.I. Private credit and datacenter infrastructure funds are sold as “diversifiers.” The Aptly Named Larry Fink has been open about it and I’ve written about him before: a big chunk of the A.I. build-out is coming from “your savings accounts and pension accounts.”
If, or more likely when, the power plants never get built or the market discovers that no one really wants to pay a lot for A.I., the little guys eat it. We’ve seen this movie with mortgage-backed securities in 2008, but after 20 years, who isn’t up for a sequel?
And he concludes:
I guess I can stop pretending the game is neutral, because I could go on and on and on with more examples. To the big players, the Elons, Altmans, the Finks, we’re just liquidity and our retirement account is being used as their stack of chips.
The cards are the same.
The edge is not.
Don’t be the sucker.
The more you look, the crookeder it gets.
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