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this post was submitted on 07 Jun 2026
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You can't eliminate the risk, but you can ameliorate it. Yes, sectors like retail, construction, and even healthcare will take a hit during the AI bust. After a crash, there's much less money floating around. People are out of work. Asset prices are down. People spend less. So every sector gets hit.
But there is a difference between a hit and a collapse. If you're invested in OpenAI, and the bubble bursts? Your investment is going to zero. The company is going to go bankrupt. Shareholders will be completely wiped out. If you're invested in say...Home Depot, well yes, in a crash, the stock will go down. With millions laid off, people will have less money to spend on home renovations, so demand for the Depot's products will decline. Their stock price will take a large hit.
But, if you're smart, this won't hurt you. Eventually things will recover, the bubble will clear out, and demand for building products will return. At that point the Home Depot stock price will recover. As long as you don't sell during the crash, you won't see any losses.
That is the key difference. An investment in any sector right now risks a decline and then recovery a few years down the road. An investment in the AI sector risks a complete collapse to zero.
I dunno man. Whatever way it goes it doesnt look good for capitalism.
Say its a huge success and they manage to achieve AGI - then comes mass unemployment, mortgage defaults, slow down in spending...
There's also a lot of disgruntlement left over from the 2008 crash, and economies never really recovered from that. Climbing out of whatever comes next is going to be a much bigger challenge. It might be easier to start over.
Frankly, for investing, AGI shouldn't even be on your radar. AGI can only result in three outcomes - extinction, complete totalitarianism, or some sort of communist system. Most likely any AGI would just kill us, probably by accident. But even if they manage to control it, then what? You quickly end up with one or a handful of AI companies owning literally the entire economy, producing everything. At that point capitalism is done. Either we allow the new oligarchy to exist indefinitely (totalitarianism) or we nationalize the companies and go full Star Trek.
What these AI companies miss is that true AGI is incompatible with capitalism. Capitalism doesn't work when only 1-3 companies make all the goods and services in the economy.
Your point on 2008 is valid though. There's a lot we just swept under the rug instead of dealing with properly.