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by paulpauper·17d ago·view on hn ↗
Nah not necessarily. Long Term Capital Management failed in 1998, but stocks would rally for 2 more years.
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LTCM didn't crash the global economy thanks to a bailout orchestrated by the US government. If anything even close to this is currently happening with Situational Awareness, then we're either about to crash hard or realize that AI is too big to fail.
Yeah, but that was a classic stock bubble. There's a lot of debt in this one. Think of all the debt for the data centers and margin for stocks is at record high. You just lost one the of the biggest buyers of data center stocks at a time they desperately need to keep their stock prices up in order to borrow more.