AI may not be profitable right now, but there’s a lot more to “the magnificent 7” than AI that keeps them profitable. Even if the AI bubble popped, people would still be wasting their time on Facebook and Microsoft teams.
They still have to make that money back somehow though. They can’t just put a load of investment down on AI, make zero money off it (or worse, less than zero) and then expect everything to be fine with the existing profits. They need to raise revenue from existing streams to cover for the loss they just incurred by doing AI. That, or cut costs, which means layoffs, which means people have less money, meaning they spend less money, which means businesses make less money, so they do layoffs, and so on and so on leading to a recession.
They are too big to fail because the politicians that are suckling at their teats say they are. If those companies go under, the bribes, er donations dry up. They won’t let that happen. Millions, if not billions, of dollars are being funneled into the policical machinery to make sure that when the bubble pops, the people responsible will not pay any real price for it. It’ll be the workers and the tax payers who will have to clean up the mess while the ones who created it will sail off into the Caribbean on their newest super yacht.
I don’t know the exact numbers but I doubt these 7 companies employ enough people to cause a recession even if they fired everyone. Hell, they are laying of a lot of their employees already.
The economy is weird man, it’s all about collective vibes. If enough people in the right places care about these companies, they’ll see small changes and freak out, making their own small changes and so on and so forth.
Vibes is a pretty loose way of putting it. It’s about information and lack thereof. Like a poker game or a real time strategy game. You might have some idea what your opponents are doing but you don’t know exactly what it is, and you don’t know if it’s actually going to work or not. You also have plenty of cash (minerals, vespene gas) to spend on a possible defence that may not work out.
One third of the stock market’s value suddenly dropping by 80% would definitely have wider reaching affects on other companies, leading to further issues.
AI may not be profitable right now, but there’s a lot more to “the magnificent 7” than AI that keeps them profitable. Even if the AI bubble popped, people would still be wasting their time on Facebook and Microsoft teams.
They still have to make that money back somehow though. They can’t just put a load of investment down on AI, make zero money off it (or worse, less than zero) and then expect everything to be fine with the existing profits. They need to raise revenue from existing streams to cover for the loss they just incurred by doing AI. That, or cut costs, which means layoffs, which means people have less money, meaning they spend less money, which means businesses make less money, so they do layoffs, and so on and so on leading to a recession.
US taxpayes will be proud to carry this burden, as always.
Privatize profits, socialize losses. The American (and thus global) way
I could understand the arguments about banks being too big to fail, because normal people and businesses have their money tied up in them.
But is Meta too big to fail? Are any of the tech giants too big to fail? Let them.
They are too big to fail because the politicians that are suckling at their teats say they are. If those companies go under, the
bribes, er donations dry up. They won’t let that happen. Millions, if not billions, of dollars are being funneled into the policical machinery to make sure that when the bubble pops, the people responsible will not pay any real price for it. It’ll be the workers and the tax payers who will have to clean up the mess while the ones who created it will sail off into the Caribbean on their newest super yacht.Especially after the 2008 debacle.
the american exceptionalism reeks with this* one
I don’t know the exact numbers but I doubt these 7 companies employ enough people to cause a recession even if they fired everyone. Hell, they are laying of a lot of their employees already.
The economy is weird man, it’s all about collective vibes. If enough people in the right places care about these companies, they’ll see small changes and freak out, making their own small changes and so on and so forth.
Vibes is a pretty loose way of putting it. It’s about information and lack thereof. Like a poker game or a real time strategy game. You might have some idea what your opponents are doing but you don’t know exactly what it is, and you don’t know if it’s actually going to work or not. You also have plenty of cash (minerals, vespene gas) to spend on a possible defence that may not work out.
Or it will never work out because you tied 20% of your company’s value to vaporware and the bad vibes cause panic selling of your stock.
One third of the stock market’s value suddenly dropping by 80% would definitely have wider reaching affects on other companies, leading to further issues.
over 2.3 million people. yeah it’d be pretty big.
Wou… Is that globally?
https://en.wikipedia.org/wiki/Parable_of_the_broken_window