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flashman13

(2,669 posts)

8. I have been saying for some time that conditions are very similar to the period just before the Great Depression.

Mon Jun 29, 2026, 11:49 AM

Jun 29

If you are interested, I highly recommend John Kenneth Galbraith's book, The Great Crash.

The AI industry is a giant incestuous money merry-go-round very similar to the stock holding companies of the 1920s. Then you had this multi-layered situation of holding companies whose only assets were stocks in other holding companies that owned other holding companies. All of this was financed on margin loans. When the actual operating company's stock went down in value, the margin calls went out and the whole mess unraveled in hours. Now it is chip companies that are financing data centers that return the money by buying chips. On paper it looks like they are making money even though paying customers don't provide enough income to pay the light bill.

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Highlight:

Central Bankers warn AI Bubble is similiar to conditions before the Great Depression [View all] SamuelTheThird Jun 29 OP

Hope for the best, prepare for the worst. oasis Jun 29 #1

So I guess the coming oil crunch will have nothing to do with it... JCMach1 Jun 29 #2

The 2007-08 crash was immediate preceded by $120+ prices per barrel of oil AZJonnie Jun 29 #3

It is rarely so simple as one thing no matter what the MSM JCMach1 Jun 29 #4

Big tech was causing serious financial instability... paleotn Jun 29 #9

Th JCMach1 Jun 29 #12

Krugman compares it to the tech bubble: tremendous over-valuation of companies that are making no profits. Martin68 Jun 29 #5

It's worse than the tech bubble SamuelTheThird Jun 29 #14

Yes. LudwigPastorius Jun 29 #15

Good points. Krugman also pointed out those facts. Martin68 Jun 29 #17

It's not about the technology at this point, it's down to just a giant grift and cash grab ToxMarz Jun 29 #6

Exhibit A: f-eloon cashing out not fooled Jun 29 #7

Perhaps, but many don't know. paleotn Jun 29 #11

I have been saying for some time that conditions are very similar to the period just before the Great Depression. flashman13 Jun 29 #8

Not to worry. We got the best president ever, running the country unlike before the Great Depression. People are 3Hotdogs Jun 29 #18

Not a secret. Was reported on before the 2024 election. Blue Full Moon Jun 29 #10

Yeah, but look who is saying it now SamuelTheThird Jun 29 #13

It's the dot com bubble all over again. CaptainTruth Jun 29 #16

It could be worse Renew Deal Jun 29 #19

I fear it's going to be worse. Initech Jun 30 #20

Me too.... CaptainTruth Jun 30 #21