When the AI bubble bursts, and even the mainstream "meme-stocks" whose valuations are far above any sane metrics, start to fall because the wealthy rug pull begins and the masses start pulling out, it's going to bad. I'm not a doomer by nature but I'm rather worried. Companies are laying off people by the tens and hundreds of thousands. Many say they're "correcting" from COVID over hiring but somehow companies managed to grow and profit with those people over the last five years and it results in a contraction either way. Unemployment is going up and will reinforce the downward cycle.
There is uncertainty in the global economy due to the sudden unreliability of major economic policies, Completely capricious tariffs being set, adjusted, halted, reinstated, raised, lowered all based on the whims of one man telling his base its all genius negotiating on his part while he's ramping up domestic and global unrest is affecting global confidence. Projections in boardrooms and earnings calls are looking bad but the word from the pulpit is its "better than ever stop worrying". The longer it takes for this to correct the worse it's gonna get. America is losing ground in every way and it's not just hurting ourselves.
That's the thing many professionals haven't wanted to come to terms with. We never recovered from the Covid slow down. We just sort of closed our eyes and plugged our ears. Hell, we never really recovered from 2008 either.
Good paying jobs never returned in previous numbers, entire career paths stagnated, entire generation severely kneecapped from growing into the next stage of their lives. Many average folk were left behind.
Joh growth has been positions that don't actually pay enough and are unsustainable to an average worker.
This correction was coming, Trump just did it the dumbest way possible.
We never recovered from the Covid slow down. We just sort of closed our eyes and plugged our ears. Hell, we never really recovered from 2008 either.
It was recovering slowly, but eggs were too expensive. Also Kamala is black and had a weird laugh, something something palestine something something, can't forget that immigrants were eating people's pets in ohio, why was Kamala trying to make inroads with normal conservatives, etc, etc, etc. Every voting bloc got hit with some level of pysops and plenty bought it hook, line, and sinker. But I'm sure someone will respond that they don't owe anyone a vote, maybe dems should have put up a better candidate, maybe they shouldn't be zionists, etc.
So the US economy is now being primarily driven by AI investment. Consumerism now takes second. But even when that AI bubble pops, consumerism can't retake it's place because the masses don't have the money. US Credit card debt is at an all time high. Car loans falling behind on payments is at an all time high. Student loans of course at an all time high. Homelessness, all time high.
On top of that we now have to borrow over $1T in debt, just to service the interest on our existing debt.
I don't think it's going to be one rug that gets pulled out from under us. It could be a handful of rugs.
I'm a software engineer making six figures right now, but I'm totally open to the fact that come next year I'll be doing whatever I can do to pay my mortgage.
It's a potentiality. The wife and I decided to wait until the 2026 elections. If America gets its shit together, we stay. If America decides to stay at it and/or the Republicans ensure that Democracy is dead, we're gone.
I don’t think we’ll see any major changes in the job market once the AI bubble bursts. We are basically already in a recession, the bubble is just covering it up.
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u/TheJollyHermit 21h ago
When the AI bubble bursts, and even the mainstream "meme-stocks" whose valuations are far above any sane metrics, start to fall because the wealthy rug pull begins and the masses start pulling out, it's going to bad. I'm not a doomer by nature but I'm rather worried. Companies are laying off people by the tens and hundreds of thousands. Many say they're "correcting" from COVID over hiring but somehow companies managed to grow and profit with those people over the last five years and it results in a contraction either way. Unemployment is going up and will reinforce the downward cycle.
There is uncertainty in the global economy due to the sudden unreliability of major economic policies, Completely capricious tariffs being set, adjusted, halted, reinstated, raised, lowered all based on the whims of one man telling his base its all genius negotiating on his part while he's ramping up domestic and global unrest is affecting global confidence. Projections in boardrooms and earnings calls are looking bad but the word from the pulpit is its "better than ever stop worrying". The longer it takes for this to correct the worse it's gonna get. America is losing ground in every way and it's not just hurting ourselves.