The AI boom has turned the standard profit margin model on its head, according to Apollo Chief Economist Torsten Slok—and it’s making the industry’s growth unsustainable.
The key difference with a Ponzi scheme is that the Ponzi/Madoff investors weren’t in on the schemes. They though they were investors in a legitimate enterprise. They had a central figure as the fraudster, wheras Enron and the AI bullshit are institutional-level fraud requiring multiple companies to be complicit.
The new one is the most elegant, because they don’t have to break the law to make money on the grift. It also makes it the biggest by far because everyone wants in on the action.
This bursting of this bubble with be catastrophic. Maybe tens of trillions (there’s estimated to be about 125 trillion dollars in assets total worldwide).
And the .com bubble the hosing crisis, the banking collapse etc. etc. It all seems like the same scam being redone over and over. Never the same but always alike. And now it seems crime is legal (if you have the capital backing).
I really hope at some point in my life the fuck ups have some lasting consequences.
The key difference with a Ponzi scheme is that the Ponzi/Madoff investors weren’t in on the schemes. They though they were investors in a legitimate enterprise. They had a central figure as the fraudster, wheras Enron and the AI bullshit are institutional-level fraud requiring multiple companies to be complicit.
The new one is the most elegant, because they don’t have to break the law to make money on the grift. It also makes it the biggest by far because everyone wants in on the action.
This bursting of this bubble with be catastrophic. Maybe tens of trillions (there’s estimated to be about 125 trillion dollars in assets total worldwide).
And the .com bubble the hosing crisis, the banking collapse etc. etc. It all seems like the same scam being redone over and over. Never the same but always alike. And now it seems crime is legal (if you have the capital backing).
I really hope at some point in my life the fuck ups have some lasting consequences.