RE: LeoThread 2025-11-24 03-26

[andyloketh]

Too much capital is chasing AI valuations driven by hype

1. Nvidia invests in Company A
2. Company A uses that money to buy chips from Nvidia
3. Nvidia books it as revenue and the stock price rises
4. Repeat

Comments

[andyloketh]

No real profit is created — just capital circulating to inflate stock prices based on sentiment

This is a classic bubble. It ends two ways:

[andyloketh]

1. Bubble pops: 401(k)s fall, the economy slides into recession and bailouts follow
2. Bubble persists: AI displaces jobs, unemployment spikes, and the top 1% capture nearly all the gains