Beevee's Owner/Giant Slayer
20,941 posts
Short term gains, then worry later is the business of corporations. It's the most predictable pattern in our country. First, it was the .com bubble that burst, then the housing crash in 2008, now it's soon to be the AI bubble. All three have the same pattern:
1. Irrational hype. In the .com bubble and the housing crash, investors and wall street were convinced that prices would only go up.
2. Lack of regulation...we can thank the Jews for that.
3. When prices fell, margin calls and defaults triggered massive sell-offs. This is beginning to happen with AI.
4. Both were considered a 'new economy.' This blinded the investors to take irrational risks.
All 4 of the above are what is now beginning to happen with the AI bubble. The collapse is in its advent stage, but it has started. We may not see the effects until a few months to a year, but when it occurs, it will collapse at once. Just like it did with the .com bubble and in 2008. Meta and Oracle are only a couple of examples. Musk's AI is spending exurbanite amount of money. Not as much as Meta, but it's a contender.
Freed from the obligations of reporting and client management, Burry returned to X with a message that cut straight through the current AI euphoria. To him, the boom in GPUs, data centers, and trillion-dollar AI bets isn’t evidence of unstoppable growth; it’s evidence of a financial cycle that looks increasingly distorted, increasingly crowded, and increasingly fragile.Burry put numbers to it. In a post on X, the investor estimated that Big Tech will understate depreciation by $176 billion between 2026 and 2028, inflating reported profits by 26.9% at
Oracle and 20.8% at
Meta, to name two of his specific targets.Meta did not respond to a request for comment. Oracle declined to comment.“He’s spot on,” Morrow tells
Fortune. Morrow has been making the arguments for months, warning that a
“tsunami of depreciation” could quietly flatten Big Tech’s AI profits. Behind the trillion-dollar boom in chips, data centers, and model training, he argues, lies a simple but powerful illusion: companies have quietly changed the length of time they account for their machines—and their semiconductor chips—wearing out and depreciating.
The ‘Big Short’ investor betting $1 billion against the AI bubble says Meta and Oracle’s accounting is hiding the brutal truth
@LowIQTrash
Blackvegatble's hypcorisy summed up in one post:
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Blackvegetable » 7 minutes ago » wrote: ↑7 minutes ago
Very simple questions...
From which you are running...