this post was submitted on 06 Oct 2025
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United States | News & Politics
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When AI bubble implodes, it will be 4X the 08 crash and this time there will be no bailouts.
I'd say the fundamental difference between Housing and AI is that we don't live in the AI. The fallout will be very different for that reason alone.
And as to "no bailouts"? Bush let Lehman go bankrupt and it set off a panic that resulted in the US Treasury outright owning half the investment banking sector by the end of the year. There's always an appetite for bailouts when shit actually impacts the fan.
US has no way to bailout trillions. you actually do live in the AI, because this bust will kill all retirement plans and pensions.
It did literally exactly this when AIG collapsed.
When it's the wealthy, there will always be a bailout. Society exists to make them richer.