Comment on Everyday AI looks more like the '08 housing bubble
drmoose@lemmy.world 3 weeks agoYes, contemporary economy and free markets are so imaginary now that cascading effects and bubble pops like 2008 are very unlikely. American stock market in particular is so far off reality (even before AI boom) that it’s basically a video game with no actual relevancy to true gross product.
The problem isn’t the imaginary market, which I agree with the description. Its the leveraging of debt, to gamble in the market, which is what low interest rates enable.
And yes, our interest rates are VERY low still. I’m looking at some ARM packages right now, and their max lifetime interest rates are on par with what a typical mortgage was about a decade ago.
KeenFlame@feddit.nu 3 weeks ago
Perfect explanation, also; since 07 thing where the hedge bros were not punished, there stopped existing any incentive to imagine any scenario where anyone lose any money due to bank runs