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this post was submitted on 06 Jun 2026
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ERROR: Capitalism has no idea how to deal with this situation.
I'm actually kinda fascinated with how this will shake out. This isn't like one or two companies making a bet. The entire S&P500 is pushing Ai.
Well, here's hoping a few investors do a flip before they hit the pavement.
This is capitalism working exactly as intended. People with capital are using it to guide businesses to make them more money.
The mistake is thinking that capitalism is motivated by a healthy economy, when the theory is that if everyone is aggressively selfish then the economy will naturally become healthy and efficient.
The people making money are counting on making their money as investors keep pumping more in. The investors are all aiming to be the last one to sell before the crash. Russian roulette venture capitalism. (In some cases they think the economy will tolerate 1-2 companies and they're aiming to buy a controlling interest in a company worth 2% current value after the correction, and in others they just have so much money that a few billion is a minor bet - BlackRock comes to mind, with more than $10 trillion to invest)
If you look at 2008, we had a similar-ish situation with a major portion of the economy being invested in mortgage based investments.
People only saw the percentage returns and not the human cost. We haven't learned our lessons and are doomed to repeat the same scenarios.
That's not nice. Think of the people who clean that pavement.
Au contraire, it actually does! The same way the last four or five economic crises were handled - massive government bailouts for the affected sector.
It'll soften the blow for the common people's 401ks so they don't completely revolt, but the c-suite execs will get their big payoff and the asset buyup (datacenters, hardware, etc) in the aftermath will transfer an unimaginable amount of wealth into the hands of yet fewer people and dramatically increase inequality.
It's a shitty solution, and one that is not viable long term, but since it has worked so many times in the past, I doubt the government is going to change up their winning strategy. Especially not with the current clown cadre at the helm.