as someone from the EU, that’s a dumb idea. the AI bubble will also pop here and we all know how the EU handled the Greek financial crisis
Comment on Is there any way the average American can insulate themselves from the AI bubble bursting?
Lumisal@lemmy.world 2 days ago
Weird no one is saying this, but exchange dollars to Euros.
Had it been done back in November of last year, 1,000$ would now be worth about 1,200$.
Even if the Euro loses some value from the crash, it probably won’t be greater than 20% of the exchange difference there is now.
amino@lemmy.blahaj.zone 1 day ago
Lumisal@lemmy.world 1 day ago
Our economy isn’t propped up by AI. One of the biggest AI’s we have is Mistral, and it’s no where near the size of the US ones.
amino@lemmy.blahaj.zone 23 hours ago
our infrastructure is heavily reliant on Microsoft, Amazon and Google hosting services, all of which could go down during their financial turmoil due to their AI obsession
Lumisal@lemmy.world 20 hours ago
We have local providers too tho, and if they go down could give this EU ones a chance to move in, which could be good.
Especially since both Microsoft and Google are both quite in the AI stuff.
1984@lemmy.today 1 day ago
I think its too late. The dollar lost 15% of its value from beginning of year… It doesnt look like it will go much lower. Its been kind of stuck for the last month.
chilicheeselies@lemmy.world 2 days ago
What is hte least friction way of doing that?
Lumisal@lemmy.world 2 days ago
Revolut
amino@lemmy.blahaj.zone 1 day ago
I beg everyone if you swap currencies on fintech apps, open a real bank account with a normal bank. Revolut can arbitrarily withhold your money at any time unless you can afford a good lawyer to get it back
Lumisal@lemmy.world 1 day ago
Revolut is subject to EU laws which are much stricter than US ones. It’s not like Wells Fargo, an actual US bank, hasn’t already messed with Americans by just straight up stealing from them. Wells Fargo would’ve been dead by now in the EU for their shenanigans.
blarghly@lemmy.world 2 days ago
I dont think this is why no one is saying this. But the reason you shouldn’t do this is because of the Efficient Market Hypothesis. This is the same for basically any investment where you are trying to be “smart”, whether you are buying gold, low tech stocks, various currencies, crypto, etc. The fact is, sitting on your ass and clicking a few buttons on an investment website takes literally no effort - which is why there are trillions of dollars in investment funds trying to do it as profitably as possible. Every dollar in the market is competing to eak as much value out of every minute in the market as possible, and these dollars are very smart.
Like, if you graduated top of your class from MIT in financial analysis, you are still at an unimaginable disadvantage, because the evil capitalist hedge funds hired all your classmates, and also all the equivalent graduates for the past 40 years where they have all been competing against each other that whole time. And they have shit tons of money to spend on the best tech they can possibly afford in order to make tiny improvements in trade returns.
You can exchange dollars and euros on the open market, which means the banks and hedge funds can do that too, which means that the anticipated difference between the two is already priced in.
AWistfulNihilist@lemmy.world 1 day ago
Great points, currency arbitrage is not something the average Joe can win at, the money they have access to is already stepped on.