Bubble needs to be destroyed before it destroys the country

9 pointsmoosedman4mo ago12 comments

If it doesn't pop it is going to consume the country, the economic effects will create political ramifications that will make the United States unrecognizable (more so) Since the Fed started hiking interest rates a substantial part of the country has been in a serious financial downturn. Now with the shut down it is becoming a crisis of food as well. It's been invisible because the massive bubble which has accrued vast amounts of money to a small fraction of the population. This has to stop. The bubble has prevented there from being any sort of help to the people in the economy who are suffering.

12 comments

raincom4mo ago

Food crisis because most of the money goes to rent and utilities.

moosedmanOP4mo ago

Lower interest rates would alleviate a lot of the crisis. The bubble has meant that interest rates have been artificially high.

cal_dent4mo ago

hmm not sure i buy this but happy to be corrected. I'd argue that low interest rate for a substantial period post GFC has led to misallocation of capital to more finite assets such as housing which in turn has led to increase house prices and secondary effects of increased rent. Lowering interest rates further will only exarcebate that. And we can of course increase housing supply, build more houses etc. but that takes time and the short to medium term will continue to be awful

FrankWilhoit4mo ago

So, pop it! Go into a bank -- any bank that is big enough to be busy but not big enough to have too many bouncers -- go up to a teller window and start pounding the counter and shouting "I want my money! Where is my money? What have you done with my money?" You might get arrested, but you'll pop the bubble, all right.

moosedmanOP4mo ago

I know you think it's a joke, but look who is rising, Mamdani and Fuentes, outer bounds of the political possible just keep expanding. And they're just a gentle preview of what is to come. Either way at the end you'll either end up with literal Nazis or literal Bolsheviks.

bigyabai4mo ago

> but look who is rising, Mamdani and Fuentes

5 years ago:

> but look who is rising, Kamela and Kirk

10 years ago:

> but look who is rising, Clinton and Trump

25 years ago:

> but look who is rising, Bush and Bernie

You can make this argument for literally any point in American history. All you need is two household-name ideologues, it doesn't prove anything.

1 more reply

FrankWilhoit4mo ago

The general process of devolution is independent of a topical phenomenon such as the AI bubble. It isn't even an instance of mass hysteria, but of hysteria among a very small and deliberately self-isolated elite

bdangubic4mo ago

> The bubble has prevented there from being any sort of help to the people in the economy who are suffering.

Now we have heard it all about this amazing bubble we are living with - did not expect to read that it prevented some help to the people who are suffering. wall st loves nothing more than to help people who are suffering…

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