'It's going to be really bad': Fears over AI bubble bursting grow in Silicon Valley

[Igel]

39. And do what? Keep it in cash, losing value through inflation?

Even high-interest savings accounts wind up invested in risky things, because they may only fund loans but the value of those loans and collateral depend on the overall market.

The only real reason to hold a lot of cash is (a) short-term because you think that the market's too unpredictable and turbulent and you're just waiting to see what happens in the next few months; (b) because you suspect deflation is around the corner, where your cash gains value as a result.

Even the 6-year annuity I put have 1/5 of my retirement in (I think it's about to start year 4) could run into trouble if it's paying a guaranteed 4.9% while the company behind it is hemorrhaging cash. And my teacher's pension is the same kind of critter--it's probably underfunded (but not nearly to the extent that some other state's teacher unions are).

Heard a nifty report yesterday--don't have 100% confidence in the source, which has a distinct partisan bias and therefore probably weighs what they think as valid based at least in part on their and the source's partisanship--that the current US financial data showing slow growth would show no or even slight negative growth if you subtracted AI, it's having just that big an effect on the overall economy.