- cross-posted to:
- fuck_ai
- technology
- cross-posted to:
- fuck_ai
- technology
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The mechanism is almost elegant in how it works against you
Yeah, this or plain fraud. Bending the rules to be included early in index funds like the spaceX case or not enforcing the rules in case of Tesla/S&P500 is what allows fraud to happen. Circular investments pumping up the numbers too. But let’s just pretend everything is fine until it’s too late
Chatgpt wrote this article.
Funnily, the article author is called Al.
Seriously:
The ECB’s warning isn’t aimed at Wall Street traders — it’s aimed at anyone whose pension or index fund quietly loaded up on AI stocks.
Didn’t know this was a thing in Europe, too.
The pension system is different, in general in the us you have your own fund and in Europe you pay to an institute like you do with insurance. Some pension funds are ginormous and manage the pensions of millions of people.
Could already qualify if you have a very broad ETF which is 20%
BubbleNVIDIA.
Magnificent 7
8 companies
Genius.
That’s like a grand a head, give or take. Mental.
If you’re worried about this… I’d say be wary of your situation. Have enough accessible cash for 6 months to a year of okay living. And if it does dip a lot, buy into it with some of that money.
And don’t sell. The only time you should sell is when you’re approaching the time you need to take everything out, like if you’re approavhing a house purchase, old age or such.
And good luck
Oh dang, I only have enough cash for zero months. …where’d I put those bootstraps…
Breath and talk to myself “No, you will NOT make some highly inappropriate joke about zero money, bootstraps and necks…” breath
Think of it like this, no money = nothing to lose!
There’s plenty of sources claiming how people like Elon have so much money in loans, when the crash comes the banks will quickly move to recover those debts.
On top of that, all you see are rich people telling others the way to get rich is getting loans upon loans. Well when the crash comes and again, you can no longer repay the loans, it’s going to hit hard! So much money is tied up in pretend money on gains that don’t exist!
Right now having no money is probably safer, my plan is getting out of debt as much as possible, as quick as possible. Hell, if it hits hard enough people might end up going back to trading goods for goods! 😂
Well when the crash comes and again, you can no longer repay the loans
Well, is that the case? Afaik when they loan with a stocks amount as collateral, the X units of stock are the collateral, not the Y value of stock.
They just set aside more collateral value than the loan is worth. Say if you loan 1k the collatelar assigned will probably be 2-3k.
If the stock holding value gets dangerously low, the lender can liquidate your stock I think
But, EVEN THEN, the NET worth of say, Musk, doesn’t change too much in that case. Because net worth already has all debts subtracted from it.
It would change in the value equal to the difference between the loan value and the liquidated collateral value I guess, but I don’t imagine that would be very large? This part I’m unsure about.
So even in the end I don’t think they lose too much…
Can you imagine if someway all the debts in the world were balanced? That if A owes something to B and B owes something to C and C owes something to A the debt becomes the difference? And this on a world level.
Look man… I’m sorry…
I don’t know what to tell you. It’s terrible being so tight on money. I don’t have advice to give on that, because all I did was get lucky to not be working minimum wage…
But I have some semi-informed advice to give about keeping money safe and wanted to share…
Oh, I didn’t mean anything by it lol. Soz.
<3
Economy crash speedrun let’s goooo!
Let’s not. It’s pretty much never been good, historically speaking.
But what about our glorious revolution?
Which one? The only revolution currently showing widespread successes is the one from the far right.
I wouldn’t call that either “our” nor “glorious”.
The AI Bros won’t care, and they will never learn, repeat those economy crisis. So just pop it before it affects everyone everywhere.
If there’s one positive thing to it, it’s how worker cooperatives were formed in most cases.
Business goes bust or big bosses decide specific location doesn’t bring enough value for shareholders - workers chip in and buy facility out. At least how it worked in, for example, Argentina.
I kinda feel Argentina is a bit different to Europe in that their economy was in a very bad shape, in Europe I would expect some Chinese enterprise buying the factory, leaving workers with pretty much nothing
I think I’ll be ok. I don’t make enough money to invest on funds.
I think one has to look at the danger of a bursting AI bubble with the crisis=opportunity mindset: If the bubble pops there will be THE opportunity to buy and profit when the market moves up again… yeah, it will perhaps not go back up to the all time high but there is a healthy profit to make.
If you are already invested, than you do not have spare money to buy a dip. If you do have spare money, your investment strategy is questionable.
2 rules everybody should know:
- Timing in the market beats timing the market
- The best day to invest was yesterday, the second best is today
Someone made a game out of this:
https://beatthecouch.com/You’re trying to beat the couch by supposedly in an informed way selling and buying from the S&P500. The couch just holds its money in the S&P500 and does nothing. Only about 10% of players outperform the couch.
It’s made with real data from the last ~ 100 years but only shows you the trend of the price, not the years.
Beating the market is easy though, you just need some insider information.
That’s brilliant, I have to play it
I invest a few tens of euros a month, and I actively try to buy low. So far I’ve managed to buy quite a few dips, and in ~15 months i’ve gained 14.84%. The total sum of money i’ve invested is not much, but it has been consistent
The MSCI World made 28.49 in the last 15 months
If you invested 100% of the money 15 months ago, not when you invested every month for 15 months.
Sure, but how am I supposed to compare someone’s personal 14% then? The number does not tell us anything. Even if OP made a fortune - he was just lucky then.
I don’t want to invest in a global fund, I invest based on my own values
My investment strategy over the last two decades was to buy something when its down, forget about it (and so don’t get frustrated when it sunk even deeper after buying), stumble over the investment > 5 years later and be happy about the accumulated money. Surprisingly it worked quiet well so far…
