#stonks — Public Fediverse posts

RE: https://toot.cat/@CptSuperlative/117018790060866914

AI investment strains showing

The video ... somewhat inadequately contextualised below ... makes the valid point that in a down market, bad assets drag down good ones as leverage, margin requirements, and loan collateral prompt heavily-borrowing ("leveraged") investors to sell anything to meet those obligations.

As I recall John Kenneth Galbraith made this observation in The Great Crash: 1929, his history of the Wall Street crash of that year which precipitated the Great Depression. Published in 1955, and reprinted many times, it still very much bears reading if you want to understand how financial markets misbehave.

I of course cannot find the quote I have in mind presently, though I submit for my reader's pleasure a compilation of others from the same author:

https://en.wikiquote.org/wiki/John_Kenneth_Galbraith

#JohnKennethGalbraith #AIBubble #Stonks #MarketCollapse #OnTheEdge