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Peter Thiel sells off all Nvidia stock, stirring bubble fears

(www.thestreet.com)
212 points hypeatei | 7 comments | 16 Nov 25 21:19 UTC | HN request time: 1.068s | source | bottom
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buybuybuy ◴[16 Nov 25 21:43 UTC] No.45948682[source]▶
Should we all buy stock in Nvidia now? It’s not like Peter Thiel is Warren Buffet or anything. And Warren Buffett is buying Alphabet.
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TheAlchemist ◴[16 Nov 25 22:10 UTC] No.45948887[source]▶
Warren Buffett is buying Alphabet out of neceessity - he already sold most of what he could sell and has way too much cash on hand - he just need to buy 'something' - Alphabet seems like the least overvalued big stock out there.
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scarmig ◴[16 Nov 25 22:12 UTC] No.45948921[source]▶
Is he required to buy stock? AFAIK he could just as well hold cash or bonds, and if he believes a bubble pop is imminent (within the next couple months), that would be a responsible move.
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1. pojzon ◴[16 Nov 25 22:17 UTC] No.45948956[source]▶
Thing is, people dont know what will happen if this bubble bursts.

Its so big that it could take with it whole global market.

There is no safe asset you can turn into in such a case, digital money would literally mean nothing when whole financial system collapses.

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2. skybrian ◴[16 Nov 25 23:04 UTC] No.45949260[source]▶
This doesn't track with what happened after previous bubbles.

Investors will be sad, but businesses that still do useful work will still have revenue. Why would they be worthless?

replies(1): >>46017693 #
3. rubyn00bie ◴[16 Nov 25 23:12 UTC] No.45949314[source]▶
That sort of crash is what central banks exist to protect against. That could be something like the Fed stepping in as a buyer of last resort and picking up several trillion dollars of equity, and/or pushing rates to zero again to incentivize private capital to more or less do the same.

A global crash of financial systems is unlikely because it’s cause too much pain for everyone. It unfortunately means we plebs are likely the ones paying to bail it out.

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4. int_19h ◴[16 Nov 25 23:17 UTC] No.45949341[source]▶
I rather suspect that in the current economic climate, a trillion dollar bailout of Big Tech would very quickly translate to riots in the streets.
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5. TheAlchemist ◴[17 Nov 25 00:56 UTC] No.45949950{3}[source]▶
Frankly, I would be happy if riots in the streets happen (if there is a bailout of Big Tech in the first place). What's going on recently with OpenAI publicly, and probably most of the 'AI' players not publicly, is disgusting - it's a bubble, everyone and their mother knows it, and these guys try to save their asses by asking for governement backing before the bubble even pops. Privatize gains, socialize losses...

It's a shame that no more bankers went to jail after 2008, although I find the situation was much more complicated than here.

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6. int_19h ◴[19 Nov 25 00:19 UTC] No.45974150{4}[source]▶
Oh, don't get me wrong, if and when this happens, I'll join the riots.

And I'm not even anti-AI; I genuinely believe that, as a technology, it is a major advancement that can and should be put to so many good uses. Which is emphatically not what the people in charge are doing.

7. pojzon ◴[22 Nov 25 19:53 UTC] No.46017693[source]▶
Previous bubble did not take global market with it. It was close to it, but it did not happen.

It just made possible next one worse x10.

Bailing out 2008 was a mistake. All of those banks were supposed to collapse.

Next burst will be a lot worse. Reason why China, Japan, Europe are all dumping their USD reserves.

Everyone is preparing for inevitable collapse of USD.

It will be devastating for the whole world. Hard to predict how bad tho.