Damn that’s around 1% of the entire global GDP…
We’re all witnessing a terrifying game of musical debt. At some point the music is going to stop.
Theor goal is to make sure retail 401ks don’t get the last seat.
What can people do to avoid getting caught by the bubble popping? Remove all tech stocks from their portfolio? What about indices like S&P500?
No, this is have enough canned food scenario.
If the money would wipe out from the economy, that is less money for everyone. First round of bankruptcies will also wipe out contractors and debt issuers of the bancrupted companies, and so on. Mass layoffs. People cannot afford restaurants, or car washes, more businesses out, more mass layoffs.
In 2001 tech bubble the money haven’t been lost. Virtual valuation dropped sharply. But the economy recovered in a year.
This is like 2008, money have been poured into concrete and silicon chips. They were spend, gone for good. It will take a few good years to recover if the bubble would burst.
I bought some value etf to hedge it. There is some theory out there that so called factor investing is worth it. The real deal is of course to catch the bottom. But as we saw with Iran war and the market it all gets eventually priced in even though everything seemingly goes to shit from different directions. I’m not smart enough for this…
You really either ride it out or be OK with the chance of missing out on a few more years of a hot market. I’ve been expecting a big (sustained) correction since 2018 and even COVID couldn’t get it done.
If you need money soon, put it in something fully insulated, like a CD or HYSA if you need it even more liquid. If you need wealth in 10+ years, just ride it out. Keep putting that piece of your paycheck in the infinite money glitch machine.
S&P 500 is fucked, I put a chunk in an all-world ex-US ETF
The Oracle credit rating is literally one step away from “Junk”!
So at least regarding Oracle, the finance world is onto them.Just a few days ago Oracle was reduced from BBB to BBB-.
That’s one worse than Bad, Bad, Bad.
We’re on track for what several analysts said would happen prior to an AI crash around November to February.
OH TAXPAAAAAAYERS
WE’D LIKE ANOTHER BAILOUT
Scratch out Enron, replace with AI companies
Enron got nothing on these crooks.
Enron wrote a chapter in the textbook these guys read as interns.
https://www.justwatch.com/us/movie/enron-the-smartest-guys-in-the-room
A Nikkei study put that hidden figure at $1.65 trillion, up roughly eightfold in four years. It is more than the $1.35 trillion the five report outright.
The Enron echo
The money is tied up in off-balance-sheet vehicles, the same kind of structure Enron used to hide debt before it collapsed 25 years ago. Back then it was fraud. Now, tightened rules and fuller disclosures make it legal.
The tools are still there, though. “Enron’s crime wasn’t having special purpose vehicles,” analyst Gil Luria told Bloomberg Law. “Enron’s crime was hiding them.”
This is fine.
