Wall Street enables something like this every decade, regular as clockwork. The S&L crisis, Enron, Black Monay, the Dot Com Bubble, the subprime mortgage collapse - it's a business model. These assholes produce NOTHING, they just hand paper to each other all day and steal our money. Then the bottom falls out and the Democrats have to fix it. Then the Republicans start talking about how much better things could be if businesspeople were in charge and the idiots fall for it again.
"Market cap" is based on vibes alone, as they're expected to grow forever, their stock is absurdly overprices. They're running out of cash, and if that triggers reevaluation their stock to a bit more realistic p/e, they're cooked. They won't be able to pay in stock anymore, which is what allowed them to maintain their monopolies.
Her style of talking makes me just wonder why is she talking like that and I have no idea what the point is. Is there a redable version of this somewhere?
It would be funny as hell if there was a huge solar flare that completely obliterated their servers before they could make a single dollar. I mean, sure the colateral would be equally devastating, but the thought of big corps getting blue balled fills me with joy.
the problem with AI is it's not generating the same ROI's as software does (which is basically "free" for them after it's finished) but it behaves much closer to something like power as it is compute that's being sold, so it is always interconnected with running costs
I remember back in 2000 I was working with a dot.com where everyone was being paid in stock, the company would pay for its internet services in their stock and they would accept the stock of other companies as payment for their services. Big companies like LoudCloud, Pets, etc.
I made sure to be paid in cash because I had seen this story before. And I got a better job before they imploded. Go figure.
I cashed out my vested options and bought my property before it all came crashing down. I still got hit pretty hard, but I have property, bought and paid for, that I'm living on.
Nicely done. A number of friends missed the bit about selling to pay the taxes on the value at the time the options exercised and found themselves with 200k tax bills and stonks that were worth nothing.
What is her username on Instagram or TikTok? I want to look at the original video and see the comments there and what the rest of her content looks like.
I’d recommend having your savings withdrawn as cash. It’s difficult by design to access your money in a tangible sense in normal conditions, let alone after a bubble burst when everyone is trying to do the same
Y'all're missing the fact that she literally started the sentence with "Big Tech used to be" meaning that that has changed. Microsoft, Apple, IBM - they had offices that were lavish, sure, but no real "infrastructure" in the same way that data centers do now. Supercomputers and the like existed, but yeah software just didn't need a whole lot of infrastructure to develop
Infrastructure is measured as a ratio compared to profits. Think of how many and how big the factories a, say, car company needs compared to the money they bring in.
Sure, the data centers running google search are massive compared to your home computer but they're tiny compared to a physical factory and make vastly more money to boot.
That statement came right before she talked about the cities of datacenters they're building. Everyone else is so busy bitching about how she held the mic that they weren't paying attention to the actual content.
And there you have it. They want to cut the rest of us out by draining us, killing us, then only having themselves to deal with. All they need is the cultists to be their laborers and military.
For 26yrs, Ive worked in an industry related to technology that is now directly related to AI and has become uncomfortably dependent upon it. I move among multiple subcontractors and see the same everywhere. This is being "hard coded" into software. Like we did with Amazon S3 when it came out. And later that format and tech became standard. This AI stuff is less of a bubble than anything people expect. There's a LOT more to it in the background. Maybe a little pop, but overall, it's staying
I really do love how our economy is just money in holding accounts and debt. Nothing is moved around anymore or actually spent. Hot take, but I believe a good economy is when people make tangible things and sell stuff over and over, and customers benefit from it. AI is like all the worst of capitalism instincts turned up to 11.
It's a huge fucking bubble. Nvidia created a shell company to which it sold billions of dollars of GPUs. The fake money and the fake chips are considered assets and have become part of securities that are now in retirement funds and other places where a burst could hurt a lot of people. We are being used to hedge their fucking bet.
Yet, I welcome the inevitable collapse. It will sadly hurt many people, but it has to happen. Of course, I don't entertain any fantasies about the right people getting punished for absolutely wrecking the global economy. On a personal level, I'll just be happy to again be able to buy memory, SSDs and GPUs at a reasonable price.
I like how she realizes that holding a lav mic in your hand looks stupid. But instead of using the clip she just holds it almost out of frame. We are so close, influences have almaot figured it out!
It looks ridiculous to you and like a dozen others. It doesn't look ridiculous to me and like a dozen others. You're gonna have to get used to it. Also nobody claimed clipped sounded bad. They asserted that people I'm assuming are smarter than you TESTED, and held was BETTER than clipped. That didn't mean clipped sounds bad, kid, that means unclipped sounds better.
No, lots of these mics are designed with clips to be attached to the shirt or other dresswear. They're not wrong about that, which means you are wrong about it happening because people are being lazy. Holding the mic is a choice for style or sound, not laziness. Kind of the exact opposite of laziness.
Because the market knows it's all a bubble. They know it isn't going to last, and they have all been gambling on how long it will last. But investors are getting anxious that it's going to hit the wall soon. So many are getting out while the getting is good, others are going to keep riding the wave for a bit longer. And some will get left holding the bag when it all comes tumbling down when the bubble bursts and there's a realignment event to what these companies are actually worth.
That's the problem when you have too much unregulated global capital chasing too few genuine returns. First it went into the housing market, then cryptocurrency, now AI.
The only thing that would soften the blow when inevitably taxpayers once again are called to bail out the failure that is capitalism would be for all the slop users to fund it, and them only.
It took Cisco 25 years to re-reach its peak stock price in the .com bubble of 1999, that is how long we can expect some of these AI companies to actually be worth what they claim, assuming they even survive that long!
Some of them will survive, the ones making the hardware at least. Because even after the bubble pops the world will still need computers, so the market leaders on hardware will still have demand for their goods. It's just going to cause prices to skyrocket.
Oh AI is not going away, just like the internet did not go away after the .com crash, or how trains did not go away after the railway mania of the 1840's. It just takes time to actually build profitable infrastructure, con men like Elon and Sam either know this and are lying or are so high on ketamine as to believe their own lies.
Given the speed and quality of Chinese models, they'll lead the market in the next 6-12 months. AI is getting commoditized. All of them are still heavily subsidized but also getting smaller and smarter = can run on consumer grade hardware (computers, phones).
That won't happen, because the more efficient they become than the ones who have the more hardware can run even more powerful ones. Market leaders always push for as much power as possible. If it only needs a phone to run, then one given the power of a server farm will be able to be even more powerful.
People have been predicting the "big bubble" for decades. The Dow closed at 800.36 at the end of 1969 and 48,063.29 at the end of 2025. There have been plenty of crashes along the way, but every one of them eventually recovered and reached new highs. History suggests that time in the market has beaten trying to predict the next bubble.
I agree. Are some tech stocks overvalued? Certainly. But not all. There will be dips and failures in, say, AI-chip support tech stocks along the way, as expected. But a big bubble? I don’t think so….
Currently, like 60% of the US stock markets value is solely from AI companies inflated prices. Without that bubble the US would be considered in a very bad recession. But AI is generating so much, it singles handily raises the US evaluation out of recession. And many major companies have bet the house on AI cutting their costs, so if the AI goes away they will be in deep shit.
Every bubble crash has destroyed thousands of lives. Left people homeless, to die on the street. Taken people's retirements and forced them to work for minimum wage until they drop dead. Caused children to starve.
Your response to all this suffering is to shrug and point out how the rich cunts that CAUSED the problem managed to profit from it, while making inequality worse.
Because Covid wasn't a market failure. The market was basically shut down which caused the problems. Market failures need a company to generate less value than it is valued at. And owe more debts than they can pay back. And for a full market crash that needs to happen for every major company in an entier market sector.
People that worked for or owned stock in Lehman Brothers might disagree about "fully recovered". To say nothing of the taxpayers that lost their homes and are still paying for the bailout.
Our diversified pensions, and 401k retirement plans are going to be left holding the bag like they always fucking are. The stock exchange is the greatest perpetual grift of all time. Now this PT Barnum of a mafia don has let all of the lunatics out of the asylum to fuck the peasantry into the fucking ground, and extract any economic leverage they might have because it looks too much like freedom, and that threatens them.
Came here to say the same. We even have Democrats advocating for the government to have ownership interest in AI companies, when that exposes the Treasury to losses. Insane. The government won't be declared insolvent before the asset stripping is finished, to maximize the extraction before economic collapse.
Governments when they nationalise something don't have to pay back its debts in full. They can pay back the debts at a price they choose, and It's that or nothing. Because when they nationalise something it is always for the betterment of the nation, which beats most legal challenge. Because the laws that let them do it also let them choose how they settle any debts.
Government ownership is the only way it will have have a hope of being regulated. Of the public understanding what it’s doing. If the industry is left to police itself it is always going to evolve into a conspiracy against the public. Always.
Only if people are passive about it. People have the power to move where their 401k is invested. They can put in the effort to have their funds more buffered when the shock happens. It just requires them to do it. They can only get away with it, because most people don't actively manage their funds, they simply invest them and then leave them be till they cash out.
And how do you expect someone to manage their funds actively, *risking* money they can't afford to risk, so needing research on what to do and how to do it, while trying to just *survive* in this country where people are barely hanging on - even those with corpo jobs and 401ks and all the things we were told to do, but don't have the time to do naught but survive, let alone understand how not to flush that retirement fund down the drain
What are fund managers paid for? The fee they collect is supposed to cover the cost of researching and managing the portfolio for long-term returns. How is the average person off the street supposed to be better at researching and picking the correct portfolio than a professional?
Not if your 401k is managed by your employer, then it's functionally out of your control, with the only available options being what they and the fund manager determine to be suitable options. Those options will be limited to index funds which will be inexorably tied to the big 7.
Are people wrong for not managing their investments? Maybe. Are there enough of people to make them an overwhelming majority of people who have put their faith in investors to manage their funds? Absolutely. Will there be consequences when these firms make all these people victims? Absolutely not. No, people shouldn’t be passive, but people with kids, and jobs have busy lives, and deserve to be protected from this racket.
And of the day it is their money, and they are responsible for it. Part of that responsibility is to do their best to not give it to people who will misuse it. Having busy lives makes it harder yes, but having their retirement funds wiped out will make their lives even worse off.
It doesn't "make it harder;" it makes it effectively impossible. Financial literacy may be low, but there is absolutely no prospect of it improving in the current system. And even if it did, the stock market is a bane on society. It's literally just legalized gambling at this point.
These fund managers are compensated to manage these funds. These investors are literally paying for the responsible management of their investments. What it sounds like here is that you don’t believe in consumer protections.
Some of the funds are in confusing bundles, and some bad companies have a umbrella corp making it harder to remove or know the bad ones. There should be the ability to ask to have a list of top 100 offenders surgically removed from portfolio, but as-is it is very obscured. However, everyone should still do their best, and together a reduction in investments in those companies will help.
The reason people put them in 401ks and retirement accounts is so that someone more qualified than they are can manage the fund. Not everyone specializes in finance.
ThisGuyPostingThings
Tangentially, I hate this new use of "compute". It feels very investor-focused/tech-bro, like someone who doesn't really know what they mean
Mountaineer30680
Couldn't happen to a nicer bag of assholes
Antrobus55
Wall Street enables something like this every decade, regular as clockwork. The S&L crisis, Enron, Black Monay, the Dot Com Bubble, the subprime mortgage collapse - it's a business model. These assholes produce NOTHING, they just hand paper to each other all day and steal our money. Then the bottom falls out and the Democrats have to fix it. Then the Republicans start talking about how much better things could be if businesspeople were in charge and the idiots fall for it again.
BellsTheorem
JanglesPrime
It would be hilarious if AI goes under because it succeeds in innovation and becomes cheap very quickly.
kingbudo101
while 800 billion sounds like a lot, the magnificent 7 stocks total market cap is around 20 trillion. a 4% drop
jtwood
But if you look at their liquidity, the Mag 7 have less than $800B sitting around in their coffers
bad1080
https://www.cnbc.com/2026/07/23/tesla-tsla-alphabet-googl-stock-today.html
bad1080
yeah but half a trillion was wiped out from just google/alphabet and tesla alone
ImgursLibertarian
NO WORRIES FRIEND. There's nothing we can't print outself out of! Just say they're too big to fail, and relax.
ProppaGanda
"Market cap" is based on vibes alone, as they're expected to grow forever, their stock is absurdly overprices. They're running out of cash, and if that triggers reevaluation their stock to a bit more realistic p/e, they're cooked. They won't be able to pay in stock anymore, which is what allowed them to maintain their monopolies.
FelonyRaptor
Her style of talking makes me just wonder why is she talking like that and I have no idea what the point is. Is there a redable version of this somewhere?
And yes of course I'm old as dirt.
ColeTslaw
Felt the same. The way she held on to the last word of every statement was audibly distractinggggggggggggggg
FelonyRaptor
This is the world now, where the message matters less than the messenger(s likes).
Zixtank
It would be funny as hell if there was a huge solar flare that completely obliterated their servers before they could make a single dollar. I mean, sure the colateral would be equally devastating, but the thought of big corps getting blue balled fills me with joy.
AFelineMassofEyes
Hot new fetishes include revenue/dividend denial & capital loss
bad1080
the problem with AI is it's not generating the same ROI's as software does (which is basically "free" for them after it's finished) but it behaves much closer to something like power as it is compute that's being sold, so it is always interconnected with running costs
Redshadow09
GOD I hope in the end they become a cheap utility that would be the ultimate revenge comeback XD
RElGNMAN
BellsTheorem
The stack needs to grow as they pass it around.
southflhitnrun
Nice loop
Beardedgeek72
Yeah all those companies think so
BearieBlue
So, it's just a circle jerk in other words.
lightfoot2
I remember back in 2000 I was working with a dot.com where everyone was being paid in stock, the company would pay for its internet services in their stock and they would accept the stock of other companies as payment for their services. Big companies like LoudCloud, Pets, etc.
I made sure to be paid in cash because I had seen this story before. And I got a better job before they imploded. Go figure.
WillemHellfire
I cashed out my vested options and bought my property before it all came crashing down. I still got hit pretty hard, but I have property, bought and paid for, that I'm living on.
lightfoot2
Nicely done. A number of friends missed the bit about selling to pay the taxes on the value at the time the options exercised and found themselves with 200k tax bills and stonks that were worth nothing.
Ooops. IRS didn't care.
Krashtestdummy
https://media0.giphy.com/media/v1.Y2lkPWE1NzM3M2U1amx3MXk5ZmFoeDBkeDNwdjlva3BzMnk0ZzFqaTRlNnRreDlpaWx1OSZlcD12MV9naWZzX3NlYXJjaCZjdD1n/ht0L7yWQcaqK4/200w.webp
Level21Magikarp
imisssprite
What is her username on Instagram or TikTok? I want to look at the original video and see the comments there and what the rest of her content looks like.
dirtcreature
Asking for a friend?
Cilvaa
evaroyt on IG
amaihai
I’d recommend having your savings withdrawn as cash. It’s difficult by design to access your money in a tangible sense in normal conditions, let alone after a bubble burst when everyone is trying to do the same
fubizdaddie
"Little to no physical infrastructure" is a fucking wild thing to say about corporations who have literal square miles of datacenters.
fubizdaddie
"to build cities of data centers" immediately after the "little to no physical infrastructure" line...
Amouthfulofhornets
Y'all're missing the fact that she literally started the sentence with "Big Tech used to be" meaning that that has changed. Microsoft, Apple, IBM - they had offices that were lavish, sure, but no real "infrastructure" in the same way that data centers do now. Supercomputers and the like existed, but yeah software just didn't need a whole lot of infrastructure to develop
pgdave
Little to no physical infrastructure?! At what point do you think Facebook and Google had "little to no physical infrastructure"?
LostCaterpillar
Infrastructure is measured as a ratio compared to profits. Think of how many and how big the factories a, say, car company needs compared to the money they bring in.
Sure, the data centers running google search are massive compared to your home computer but they're tiny compared to a physical factory and make vastly more money to boot.
fubizdaddie
That statement came right before she talked about the cities of datacenters they're building. Everyone else is so busy bitching about how she held the mic that they weren't paying attention to the actual content.
FlintNorth44
And there you have it. They want to cut the rest of us out by draining us, killing us, then only having themselves to deal with. All they need is the cultists to be their laborers and military.
colderfish
For 26yrs, Ive worked in an industry related to technology that is now directly related to AI and has become uncomfortably dependent upon it. I move among multiple subcontractors and see the same everywhere. This is being "hard coded" into software. Like we did with Amazon S3 when it came out. And later that format and tech became standard. This AI stuff is less of a bubble than anything people expect. There's a LOT more to it in the background. Maybe a little pop, but overall, it's staying
pmulax086
Oh, of course AI is staying, but right now it's like the Klondike Gold Rush.
Luvlyquants
what is this? Cramer from onlyfans? :)
sevro77
They all can't win, some will but most wont.
WillemHellfire
This reminds me of the dot com bubble. How quaint it was compared to this.
puxorb
I really do love how our economy is just money in holding accounts and debt. Nothing is moved around anymore or actually spent. Hot take, but I believe a good economy is when people make tangible things and sell stuff over and over, and customers benefit from it. AI is like all the worst of capitalism instincts turned up to 11.
MeeseOnABeam
"markets can remain irrational longer than you can remain solvent" - john maynard keynes
StarmineRendezvous
My running theory is that rich people know financial systems won't survive the transition to AI so debt doesn't matter. Only what has 1/
StarmineRendezvous
been built and is under their control does, when the game of monopoly ends. Of course, the end result is dystopia for us. /2
nezo
Soon we will be in the universe of DUNE
ArnarKristjansson
If a Dune fan out there has his number, now is the time to call Gerard Butler and ask how his jihad is coming along.
cosinewave
It's a huge fucking bubble. Nvidia created a shell company to which it sold billions of dollars of GPUs. The fake money and the fake chips are considered assets and have become part of securities that are now in retirement funds and other places where a burst could hurt a lot of people. We are being used to hedge their fucking bet.
Goldensands
wadatahmydamie
Ree81
Could be a cool "I work out to lift the guillotine" meme.
manyslayer
AlwaysHasBeen.gif
dnir54
Yet, I welcome the inevitable collapse. It will sadly hurt many people, but it has to happen. Of course, I don't entertain any fantasies about the right people getting punished for absolutely wrecking the global economy. On a personal level, I'll just be happy to again be able to buy memory, SSDs and GPUs at a reasonable price.
ministryofpeace
They'll probably get some sort of bailout rather than punishment
sneakypoo
The microphone has a clip on it, you don't have to hold it up with your hand.
Margrave9000
The algorithm prefers it this way - the content becomes more engaging.
fubizdaddie
They can't hear you. You don't have a microphone or an audience. They do though; lots of subscribers who intentionally listen to their content.
sneakypoo
I'm so sorry, I will now stop speaking until I have a loyal following.
mikeatike
I like how she realizes that holding a lav mic in your hand looks stupid. But instead of using the clip she just holds it almost out of frame.
We are so close, influences have almaot figured it out!
PastureofMuppets
See audio tests with hand held vs clip; hand held sounds far better
DesperateDunn365
I see plenty of people using them clipped and never once thought the sound wasn't good enough. In the hand looks ridiculous.
fubizdaddie
It looks ridiculous to you and like a dozen others. It doesn't look ridiculous to me and like a dozen others. You're gonna have to get used to it. Also nobody claimed clipped sounded bad. They asserted that people I'm assuming are smarter than you TESTED, and held was BETTER than clipped. That didn't mean clipped sounds bad, kid, that means unclipped sounds better.
beeeeeeerkaaaaa
It's not that big of a deal.
delecti
You may think it looks ridiculous, but this is made for an audience that doesn't. Tastes change, and you aren't the target audience.
Margrave9000
Yup. This is the future. Whiners live in the past, but frankly, dear, nobody gives a damn.
gronzilla
People using "them" clipped aren't using the same mics, it's really easy maths. You can trust people are lazy.
fubizdaddie
No, lots of these mics are designed with clips to be attached to the shirt or other dresswear. They're not wrong about that, which means you are wrong about it happening because people are being lazy. Holding the mic is a choice for style or sound, not laziness. Kind of the exact opposite of laziness.
gronzilla
Yes, and lots of them are cheap knock-offs that really don't work well then.
Targe0
Because the market knows it's all a bubble.
They know it isn't going to last, and they have all been gambling on how long it will last.
But investors are getting anxious that it's going to hit the wall soon.
So many are getting out while the getting is good, others are going to keep riding the wave for a bit longer. And some will get left holding the bag when it all comes tumbling down when the bubble bursts and there's a realignment event to what these companies are actually worth.
Bystandr
The market is definitely more aware now that it looks more like a bubble all the time. Also that AI is getting all of its capability and
Bystandr
knowledge from a set of data no one has paid for, by human authors that have contributed their wrote knowledge but not their creativity,
Bystandr
empathy or other reflection on what AI regurgitates to us, which means your 'AI answer' is a snippit (or collection of snippits) of peoples'
Bystandr
thoughts, and the AI bot, itself, isnt really 'thinking' in the sense we understand the process, ourselves. Heck some of us dont really
Bystandr
think in a recognizable manner.
themanwhoisalternatelyrudeandpolite
That's the problem when you have too much unregulated global capital chasing too few genuine returns. First it went into the housing market, then cryptocurrency, now AI.
Emjayen
The only thing that would soften the blow when inevitably taxpayers once again are called to bail out the failure that is capitalism would be for all the slop users to fund it, and them only.
RuBisCO1
It took Cisco 25 years to re-reach its peak stock price in the .com bubble of 1999, that is how long we can expect some of these AI companies to actually be worth what they claim, assuming they even survive that long!
Targe0
Some of them will survive, the ones making the hardware at least.
Because even after the bubble pops the world will still need computers, so the market leaders on hardware will still have demand for their goods. It's just going to cause prices to skyrocket.
RuBisCO1
Oh AI is not going away, just like the internet did not go away after the .com crash, or how trains did not go away after the railway mania of the 1840's. It just takes time to actually build profitable infrastructure, con men like Elon and Sam either know this and are lying or are so high on ketamine as to believe their own lies.
PushPullMagnet
Given the speed and quality of Chinese models, they'll lead the market in the next 6-12 months. AI is getting commoditized. All of them are still heavily subsidized but also getting smaller and smarter = can run on consumer grade hardware (computers, phones).
Targe0
That won't happen, because the more efficient they become than the ones who have the more hardware can run even more powerful ones.
Market leaders always push for as much power as possible.
If it only needs a phone to run, then one given the power of a server farm will be able to be even more powerful.
ahbrannon1
People have been predicting the "big bubble" for decades. The Dow closed at 800.36 at the end of 1969 and 48,063.29 at the end of 2025. There have been plenty of crashes along the way, but every one of them eventually recovered and reached new highs. History suggests that time in the market has beaten trying to predict the next bubble.
UsedCarSalesChick
I agree. Are some tech stocks overvalued? Certainly. But not all. There will be dips and failures in, say, AI-chip support tech stocks along the way, as expected. But a big bubble? I don’t think so….
Targe0
Currently, like 60% of the US stock markets value is solely from AI companies inflated prices.
Without that bubble the US would be considered in a very bad recession.
But AI is generating so much, it singles handily raises the US evaluation out of recession.
And many major companies have bet the house on AI cutting their costs, so if the AI goes away they will be in deep shit.
RuBisCO1
Define big? .com buuble of 1999 big, 2008 recession big, 1929 great depression big?
jasondeslin
You're a fucking idiot.
Every bubble crash has destroyed thousands of lives. Left people homeless, to die on the street. Taken people's retirements and forced them to work for minimum wage until they drop dead. Caused children to starve.
Your response to all this suffering is to shrug and point out how the rich cunts that CAUSED the problem managed to profit from it, while making inequality worse.
Froggie243
That's pretty dismissive of the massive grift being performed against us here. This is 2008 all over again.
pgdave
The bubble burst huge then, and fully recovered by just a few years later.
MulliganStew
Not only that but basically been on a very long bull run by historical standards. There was a big drop in COVID but recovered there too.
Targe0
Because Covid wasn't a market failure.
The market was basically shut down which caused the problems.
Market failures need a company to generate less value than it is valued at.
And owe more debts than they can pay back.
And for a full market crash that needs to happen for every major company in an entier market sector.
peopleBeforeCorps
People that worked for or owned stock in Lehman Brothers might disagree about "fully recovered". To say nothing of the taxpayers that lost their homes and are still paying for the bailout.
pgdave
TARP had a net cost of 31B over the course of 15 years - it wasn't exactly an expensive operation.
Eyeetsass
Our diversified pensions, and 401k retirement plans are going to be left holding the bag like they always fucking are. The stock exchange is the greatest perpetual grift of all time. Now this PT Barnum of a mafia don has let all of the lunatics out of the asylum to fuck the peasantry into the fucking ground, and extract any economic leverage they might have because it looks too much like freedom, and that threatens them.
frontseatdog
Came here to say the same. We even have Democrats advocating for the government to have ownership interest in AI companies, when that exposes the Treasury to losses. Insane. The government won't be declared insolvent before the asset stripping is finished, to maximize the extraction before economic collapse.
Targe0
Governments when they nationalise something don't have to pay back its debts in full.
They can pay back the debts at a price they choose, and It's that or nothing.
Because when they nationalise something it is always for the betterment of the nation, which beats most legal challenge. Because the laws that let them do it also let them choose how they settle any debts.
Eyeetsass
Government ownership is the only way it will have have a hope of being regulated. Of the public understanding what it’s doing. If the industry is left to police itself it is always going to evolve into a conspiracy against the public. Always.
frontseatdog
Governments have never needed to own businesses to regulate them. I've never heard anyone suggest that, since it's observably false.
Targe0
Only if people are passive about it.
People have the power to move where their 401k is invested.
They can put in the effort to have their funds more buffered when the shock happens.
It just requires them to do it.
They can only get away with it, because most people don't actively manage their funds, they simply invest them and then leave them be till they cash out.
Lynkfox
And how do you expect someone to manage their funds actively, *risking* money they can't afford to risk, so needing research on what to do and how to do it, while trying to just *survive* in this country where people are barely hanging on - even those with corpo jobs and 401ks and all the things we were told to do, but don't have the time to do naught but survive, let alone understand how not to flush that retirement fund down the drain
Nah. It's a grift. It always has been.
themanwhoisalternatelyrudeandpolite
What are fund managers paid for? The fee they collect is supposed to cover the cost of researching and managing the portfolio for long-term returns. How is the average person off the street supposed to be better at researching and picking the correct portfolio than a professional?
MostAwesomeDan
Not if your 401k is managed by your employer, then it's functionally out of your control, with the only available options being what they and the fund manager determine to be suitable options. Those options will be limited to index funds which will be inexorably tied to the big 7.
Eyeetsass
Are people wrong for not managing their investments? Maybe. Are there enough of people to make them an overwhelming majority of people who have put their faith in investors to manage their funds? Absolutely. Will there be consequences when these firms make all these people victims? Absolutely not. No, people shouldn’t be passive, but people with kids, and jobs have busy lives, and deserve to be protected from this racket.
Targe0
And of the day it is their money, and they are responsible for it.
Part of that responsibility is to do their best to not give it to people who will misuse it.
Having busy lives makes it harder yes, but having their retirement funds wiped out will make their lives even worse off.
Zamiel77
It doesn't "make it harder;" it makes it effectively impossible. Financial literacy may be low, but there is absolutely no prospect of it improving in the current system. And even if it did, the stock market is a bane on society. It's literally just legalized gambling at this point.
Eyeetsass
These fund managers are compensated to manage these funds. These investors are literally paying for the responsible management of their investments. What it sounds like here is that you don’t believe in consumer protections.
PastureofMuppets
Some of the funds are in confusing bundles, and some bad companies have a umbrella corp making it harder to remove or know the bad ones. There should be the ability to ask to have a list of top 100 offenders surgically removed from portfolio, but as-is it is very obscured. However, everyone should still do their best, and together a reduction in investments in those companies will help.
FiveShiftOne
This sounds like a roundabout way of blaming the victims.
bodyvsspirit
The reason people put them in 401ks and retirement accounts is so that someone more qualified than they are can manage the fund. Not everyone specializes in finance.