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The AI Investment Boom

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271 points m-hodges | 1 comments | 20 Oct 24 14:56 UTC | HN request time: 0s | source
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shortrounddev2 ◴[20 Oct 24 16:19 UTC] No.41896414[source]▶
I can't wait for the AI bubble to be over so HN can talk about something else
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bugbuddy ◴[20 Oct 24 16:24 UTC] No.41896448[source]▶
I think it will burst when the Fed realizes inflation is not done and start raising again in 6 months. They can only feed the bubble for so long before the common people have had enough of rising prices.
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almost_usual ◴[20 Oct 24 16:32 UTC] No.41896516[source]▶
The Fed raising rates will increase inflation at this point (and further increase fiscal deficits), nothing stops that train.

Arguably if the investment here works out we’ll see deflation through extreme technical advancements.

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bugbuddy ◴[20 Oct 24 16:46 UTC] No.41896646[source]▶
No, raising rate would bring the economy to a slower pace and reduce private sector consumer demand. Private sector investment can continue to increase but at some point that too will hit a brick wall. The public sector spending depends on which type of big ego people get to make decisions. Given the extreme excesses so far it can go either way. The now extinct fiscal conservatives might just make a return finally but don’t hold your breath.
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1. johnnyanmac ◴[21 Oct 24 14:34 UTC] No.41904606[source]▶
>raising rate would bring the economy to a slower pace and reduce private sector consumer demand.

Tech companies decided to respond with lower consumer demand by using price hikes, though. And of course letting go of labor, adding to the issue.

These kinds of companies aren't the ones being slowed by increased rates. They can just whether the storm and drain blood out of the rocks they have left on board.

>Private sector investment can continue to increase but at some point that too will hit a brick wall

At this point I'm betting the economy hits an objective recession before that brick wall happens. But I suppose we'll see.