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Cake day: June 9th, 2023

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  • AOC is right, if AI bubble burst, companies shouldn’t be bailed out. I want to remind people that not ALL bubble bursts have resulted in bail outs. When the dot-com burst, there were no bailouts. There was a short recession of 8 months, and the rest of the world continued on in its aftermath. When the commodities bubble burst, in the 2000s there was no bail out. When the housing bubble burst, there was bailout because banks had lent too much money into the housing bubble. If banks fail, there would be bank runs, and that contagion would have spread everywhere and the entire financial system would have collapsed. Currently, there are no bank debts nor bonds being issued to spend billions on AI data centers. The danger will be when leverage is used to fund these trillion-dollar outlays. Currently there is very little debt tied to AI bubble. Most of the AI spending is coming from the humongous tech companies with loads of cash on hand and with fat profit margins who are plowing it all into AI data centers. When it does go bust, their valuations will deflate but the business will still remain. Watch for use of leverage or debt in AI. Once it enters the equation, that’s where the systemic risk will begin to tick up.


























  • It’s not new, and it’s known to China and any half-intelligent observer forever. Rare earths are the only lever China has on US. US on the other hand has a chokehold on China’s throat, its economic future and present: AI chips, and the largest single export market for China’s economic engine while its economy falters - its exports. Trump has the leverage, and he’s bargaining hard.





  • the “Buddhists” of Pol Pot’s regime certainly made effective/murderous communists

    Your post shows a lot of errors and erroneous logic. Pol Pot wasn’t “Buddhist” Pol Pot was a communist. Conflating conflicts in Sri Lanka to the conflict in Myanmar into a “violence in Buddhist regions around the world” is a logical fallacy, and intellectually stupid as can be. A brief look at your post history shows your interest in colouring every conflict into a religious one is rather disturbing.