Comment on The AI boom is more overhyped than the 1990s dot-com bubble, says top economist
peoplebeproblems@midwest.social 4 days agoWell that’s just it. People don’t need AI to live, and only AI investors stand to lose anything (and anyone who had a retirement that got invested in it).
But the real estate market, which has been growing exponentially faster since the 1990s (while median income has been linear) has created a bubble that will be broken by some market event, something where real estate investors sell. That’s rare and it could only happen with something with a stupid sharp decline like you just described. I don’t know if the AI bubble is big enough itself to do it.
But I don’t think it will be residential real estate to collapse first, it will be commercial real estate. Once that happens, it’s going to be a free fall and bring everything else with it.
naught101@lemmy.world 4 days ago
Oh I thought you meant the GFC subprime mortgage bubble.
I’m not sure that I would think of the current housing crisis is a bubble… It’s based on undeniably real value… It absolutely is an unethical hoarding of wealth by the wealthy, but it’s not imaginary like a bubble.
Well… Unless you consider all of capitalism a bubble (in the sense that a massively inequal society is inherently unstable in the long run). Which I kinda do.