Comment by aurareturn

15 hours ago

I was old enough to remember the 08 crash. Then the market starting recovering in 2011/2012 and the sentiment was that the system would crash again soon like 08. Turns out, it was an amazing time to invest.

Post 08 crash, all sorts of conspiracy websites like Zero Hedge were popular saying how the world economy would keep crashing.

4 comments

aurareturn

Reply
sailfast  14 hours ago

The only reason this happened was due to taxpayers bailing out financial institutions. This only exacerbated an insane amount of moral hazard already present in the market following previous bailouts.

Unfortunately, the US Government continued to run themselves into the ground spending-wise and may have a difficult time with another bailout, unless everyone pretty much agrees that we cannot have a USG failure, so they all pretend like nothing happened.

Eventually the merry-go-round stops, I'm just not sure what the catalyst will be, and it might be 100 years from now.

cogogo  15 hours ago

I am old enough to have had multiple career changes since starting on a major firm’s rates floor in 2008. These IPOs are tiny compared to the overall stock market and the stock market is absolutely tiny compared to debt markets. People consistently underestimate the size of the world economy or even their local economy. The world may look small from an orion capsule near the moon but almost every aspect of human society is bigger than most people can reason about. It is possible these IPOs have an outsized impact on sentiment for weird reasons. But it won’t be an actual outsized impact on capital markets.

Edit: I should add the AI bubble can absolutely burst but there is no reason to believe these IPOs are the end of the ride. If I knew I would be…

  • lompad  5 hours ago

    The thing is that the IPOs necessitate a full release of their actual costs for inference and training. This by itself should be enough to pop the bubble, if the occasional bits of it we get are anything to go by.

    There is a reason anthropic is still hiding those details:

    > key details typically included in that form about a company’s operations — like potential risks to its business, executive compensation, and other financials — won’t become public until later on in the process

    Source: https://www.theverge.com/ai-artificial-intelligence/941016/a...

    We'll see, maybe they trigger some new rule change to be allowed to keep it hidden. Wouldn't be surprised about that at all.