this post was submitted on 21 Oct 2025
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The entire US economy is currently being propped up by growth in the AI/tech sector. And I am convinced that LLMs are fundamentally incapable of delivering on the promises being made by the AI CEOs. That means there is a massive bubble that will eventually burst, probably taking the whole US economy with it.

Let’s say, for sake of argument, that I am a typical American. I work a job for a wage, but I’m mostly living paycheck to paycheck. I have maybe a little savings, and a retirement account with a little bit in it, but certainly not enough that I can retire anytime in the near future.

To what extent is it possible for someone like me, who doesn’t buy into the AI hype, to insulate themselves from the negative impact of the eventual collapse?

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[–] SoftestSapphic@lemmy.world 6 points 5 days ago (1 children)

The stocks that are inflating are a significant portion of the stock market.

When they crash everything will.

When that happens the only way to not lose is to not have money invested.

[–] AWistfulNihilist@lemmy.world -4 points 5 days ago (1 children)

Right, they lose value, but you still retain ownership. As a part of the regular flow of things the money you make from those stocks gets reinvested into more ownership, something that keeps happening even when the value of those stocks fall.

As long as your ownership stays, the market will rebound and you will make a premium because the number of stocks you owned actually went up during the period of value loss.

When people talk about how much money rich people made during covid, they are largely talking about stock value, not just carpet bagging.

[–] SoftestSapphic@lemmy.world 6 points 5 days ago* (last edited 5 days ago) (2 children)

I'm sorry but I can only describe this mentality as cope.

The market rebounding requires diversified investors propping it up, which no longer exist.

If AI goes kaput the stock market is getting set back at least half a decade, it will rebound, over the course of a decade or so.

That's not good for people who need a retirement, like the vast majority of people invested in the stock market

[–] SaveTheTuaHawk@lemmy.ca 1 points 4 days ago

See 2008. Now, multiply it by 7. Jacked to the tits.

[–] AWistfulNihilist@lemmy.world -2 points 5 days ago* (last edited 5 days ago)

Yeah, no the market has plenty of diversification, there have been times in history where our investments as a country have been much less diverse. When the AI bubble pops, and it will, it's gonna be just like all the other bubble pops we've experienced. People who didn't sell made back those funds after every crash. The people who needed the money right then, the elderly especially, we're totally fucked. They couldn't wait out the dips.

I'll grant you it's possible this is end of the American expirement because of mixing this with Trump, but i would have to ignore every other historical example. In which case the money won't matter at all because there will be no guaranter of American fiat currency, which means you'll see Argentina levels of inflation, we aren't even close to that yet.

No it'll pop, the rich who are heavily invested will make a ton of money when investors move their funds to another bubble, we're also in a real estate bubble! And the whole machine will keep moving.

If you're planning for a catastrophic failure you should really be buying that gold tho, precious metals, bullets, guns, fresh water, seeds.