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You know, the only thing keeping the US economy going is its big bet on AI. The massively overvalued tech stocks, the 7 tech company stocks at the top of the Nasdaq, are the only thing flying the flag right now. Doubts, however, are more than creeping in, they are marching in, in the minds of many experts. The crazy Trump tariffs are viewed by every sane economist as unsustainable and downright dangerous. Now, circular financing tricks exhibited by Nvidia and OpenAI are giving rise to bad memories from the late 1990s. Bursting bubbles are on the tip of every tongue in the investor milieu. Warren Buffet has cashed up to the tune of $300 billion in prep for some really bad times.
“At OpenAI’s DevDaythis week, OpenAI boss Sam Altman did what American tech bosses rarely do these days: he actually answered questions from reporters.
“I know it’s tempting to write the bubble story,” Mr Altman told me as he sat flanked by his top lieutenants. “In fact, there are many parts of AI that I think are kind of bubbly right now.”
In Silicon Valley, the debate over whether AI companies are overvalued has taken on a new urgency. Sceptics are privately – and some now publicly – asking whether the rapid rise in the value of AI tech companies may be, at least in part, the result of what they call “financial engineering”.
In other words – there are fears these companies are overvalued.”
AI Tech Stocks The Only Great Thing In The US
A lot of experts are telling us that the AI bet is the only thing preventing the Trump regime from crashing and burning. Because without that winning streak not much else in America is worth sticking around for. 9 million US citizens have departed the place for more hopeful shores since Donald Trump was returned to the White House. If the bubble bursts on the Magnificent Seven get ready for more crowded exits, as folk rush to get off the sinking ship.
“Most of the Magnificent Seven stocks have higher price-to-earnings ratios than the S&P 500 as a whole, according to another Motley Fool analysis. That means Magnificent Seven stocks are historically overvalued. “
“AI researcher and skeptic Gary Marcus put forth a compelling theory: that viewers can tell when Altman is lying or stretching the truth by the way he looks up and away from the camera when being filmed.
“When he says things he can’t actually deliver, or that aren’t the full truth, he often looks up at the sky,” Marcus proffered.”
If and when the AI tech bubble bursts it is going to cause global havoc, as it will impact far and wide. The massively overvalued tech stocks will reverberate throughout markets as they crash.
Trump Shoots The Economic Messenger
“The Trump economy labour statistics fall to half as many jobs created as the Biden economy at the same time last year. In childish retaliation Donald Trump fires the official responsible for the statistics. Trump shoots the economic messenger. The American people under this authoritarian regime lose another objective guide to what is happening with their economy. The liar in the White House is wrecking the economy with his crazy tariffs creating uncertainty everywhere. Who can afford to invest when they don’t know what the f*** is going on? The US is heading for a huge fall via these globally unpopular economic policies.”
Robert Sudha Hamilton is the author of The Stoic Golfer; Money Matters and America Matters: Pre-apocalyptic Posts & Essays in the Shadow of Trump.
©MidasWord
