this post was submitted on 09 Oct 2026
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I believe the implosion of the AI bubble will essentially torpedo the only thing still supporting the US economy?
Or, after a nasty hangover, it'll free up capital and people that can be put to more socially productive uses.
Yes the only thing propping up the USD is the AI bubble. A lot of it is held by non US investors who, in the event of a market crash, would sell dollars to repatriate back home, sending the dollar tanking, which would encourage foreign holders of US Treasuries like Japan to dump them as well. This would force up bond yields and create a US debt crisis.
Yes. When the bubble finally pops it means AI is here to stay and the remaining companies will probably climb 100x over the next two decades, but all the people currently invested will lose almost everything. The people not invested will still feel the effect as the layoffs and bankruptcies start rolling out, and anyone pension or retirement that is tied to bubble will lose a lot of value.
This will come right as the bond market is reaching the point of no return, and the US won't be able to pay back the debt. A lot of people are going to lose everything, including their retirements during the debt liquidation that is coming.
Maybe. Or maybe LLMs will just go tits up. Don't pretend you can predict the future.
I'm just going oFf history of bubbles. Usually when something becomes a bubble, it becomes a part of life after the correction.
AI will “stay” in what form? Local models? The companies selling it are almost certainly going to lose their over 100 lawsuits of copyright infringement they’re 100% guilty of. I’m sure local models will be utilized, but not these LLM snake oil salesman’s products anymore.
AI will be in everything you do. The companies that remain after the Bible pops will become the largest companies in America.
About time finally