Hello everyone. I talk a lot about economy. And recently I talked a lot about the financial bubble that is forming. Of course I'm talking about the supposed AI bubble. Which still some people claim is not a bubble. But my personal understanding says that it is. And even though the main entities of this bubble which are the AI related companies, have majority of their investments from other institutional investors, we cannot simply say that okay, normal people are safe if the bubble pops. And I have a somewhat of an argument for this claim.
First of all, let's talk about bailouts. If the companies fail in the event of the bubble popping, the government will have less room to build them out compared to 2008. Now before I move forward, I must clarify that even though this whole situation is inside the US, we should not forget that they are the reserve currency holders and if anything catastrophic happens, it will reverberate throughout the world, just like in 2008. Any of you who keep accounts of financial news from across the globe, may know that the USA has a lot of debt. Now. This is a lot more than what they had in 2008. So their government cannot simply go about printing more money to bail these companies out because that might tank their economy further. So the enormous debt they have right now is borrowing them from simply building the companies out the same way as before. Now on to my second argument which is the household investments. The AI driven financial situation which we're currently in, is moving the s&p 500 and the NASDAQ index along with it. So when companies like Google meta and Nvidia rise in stock prices, the other companies in the same index go up as well. So they will most obviously follow suit when they crash. Crash. Now if they crash the savings of a lot of people will vanish as well. Because we must remember that the American economy has been promoting household investing a lot more than before. So a lot of normal people will lose their own money as well. And it will affect people like you and me as well because we, the people who buy crypto, will also face the crash because recently more than ever, crypto is very much aligned with the traditional financial markets. I mean you all saw what Trump's tariffs in China did a couple months ago.
Lastly, I would only want to say that times are not easy. The crypto market currently is not in a good shape. And before it can get any better, who knows how many more obstacles you will have to overcome.
