alt Hacker NewsI'll bite. Isn't as obvious to me as it is to you, I'm just a programmer, I don't know how the economy works. This is literally the first time in my life I heard anything about governments borrowing Yen like this and that this would become an issue.
I'm aware of an "AI bubble" and the over-concentration on the "Magnificent 7".
What else is obvious to people and why is the timeframe (next 4 years) so obvious?
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It’s not as obvious as they claim. If it was, if the future was somehow predictable, there would be software that did it; there isn’t.
People have been claiming the end is near since forever; economists have been saying for months now that stocks should already be falling, but they are going up. And also, it feels good to be part of the in-group that just knows more than everyone else. Just ask a prepper: they will be equally convinced.
So in summary, even if we’re headed for another crisis, unless you’re only a few years from pension, you’ll just sit this one out calmly, just like all crises before. Unless the global economy breaks down for good (in which case you’ve got other things to worry about), your ETF will recover. Don’t let the fear mongers get into your head.
The entire stock market basically functions as a funnel of wealth from the middle class to the rich right now. When OpenAI and Anthropic IPO, they'll be megacap stocks and 401ks and pension funds the world over will invest in them. Then insiders will cash out, and the AI bubble will collapse. USD will have transferred from the retirement accounts of middle-class people to the rich. This is how all stock market crashes work. This one is especially interesting because the middle class is already so squeezed - how many more times can they pull this trick off? Seems like it can't go on many more times.
Well, investment markets all over the world are not reflecting the real economy right now. You can see that on how stock prices don't reflect how wealthy you feel and maybe more clearly in how house prices are completely unrelated to the amounts people can pay.
That's the obvious part. The consequences of that are anyone's guess, as is the timeframe. But it's not a sustainable situation, so something is bound to happen to change it eventually.