The AI Bubble Has Already Burst

Why You Might Want To Read This: The evergreen point that the stock market is NOT the economy is never more relevant than the chatter around the much-talked about artificial intelligence (AI) “bubble.” Truth is, the AI bubble has ALREADY BURST, and that has very little to do with Nvidia’s stock price. [Happy Holidays… take out a paid subscription to this newsletter to brighten up the day…or at least my day :)]

The Big Picture point: AI is following the same basic rules of capitalism that hailed the building of the railroads, the rise of television as it supplanted radio, the dawning of the Internet era and any other economic new shiny thing: a few people are seizing the wealth being created by everyone else and saddling most people with the burden and cost.

Every economic shift, in capitalism, moves large amounts of wealth into the hands of a few. Most of the shifts happen in secret or at the very minimum are oiled by arcane legal and regulatory worlds that are opaque to the average per…