Comment by chasd00
7 hours ago
The banks will start to pull back on AI financing because their risk calculations are going up. That will make the news and people will sell their AI stocks and just put cash in a money market fund or something. Stock price decline confirms the bank’s calculations and now they def. aren’t lending to AI companies. That makes the news and now people are really selling their AI stocks which drives the price down further. The banks react again…
In 2008/9 people became paranoid there was nowhere safe to go and that really screwed things up on top of everything happening in the stock market.
https://www.investopedia.com/articles/economics/09/money-mar...
> just put cash in a money market fund or something
So you are predicting everybody will escape into dollars. Which by themselves are extremely risky because the world is at the verge of ditching dollar as global currency.
There was already double digit inflation just because during the pandemics US overprinted dollars in relation to the size of the global economy. Imagine what the inflation will be if the dollar economic domain shrinks by half or more.