This Bubble Is Different Than The Ones Before

Hey everyone. I hope you're all doing very well and life has been good to you. Although the market has not been good to us, we should continue to help and continue our lives otherwise as the market is not the life and blood of our days. Anyway, today I do not want to talk about the crypto market rather about the financial markets. And previously I have talked skeptically about the financial markets and how AI is being a bubble. But today I want to break the tradition and I want to say something positive. Yes, it is still a bubble but I want to make it clear that not all bubbles will wipe off the savings of normal people like you and I. There are some strong arguments for this case. I will not be going into detail like a research paper, rather I will describe casually why I think so. ---  [Source](https://unsplash.com/photos/person-in-black-suit-jacket-holding-white-tablet-computer-nApaSgkzaxg) --- First of all, let's understand why I am coming to this decision. If you look back to 2001 and 2008, the dot com bubble and the housing crash, you will see that it was one or two particular things that eventually set the world on fire. For 2001. It was antitrust cases and research papers which stated most dot com companies weren't wanting a stable business, and in 2008 it's simply people defaulting on their mortgages. Now if you come back to the present, there have been threats made towards the AI business of that scale. Such as tariffs, restrictions on chip exports and other things. And of course there is always research on showing why this is not sustainable. So why hasn't this bubble burst yet? The answer is not something you will see right away, but you'll have to dig through the news to realize it, but it is very simple when you see it. The short answer is this time. Unlike the previous times, regular people are not involved now for the long answer. Usually whenever there's a bubble, you'll see that it is a bunch of over inflated companies who are over inflating the price of some product of which regular people buy stocks and expect to turn a profit and get rich overnight. Which obviously never happens. As these are regular people and it is basically their life savings in most cases, they tend to run away at the first alarm bell. And if you find enough people who will do the same, your market will cascade into chaos. People will see other people selling and the price of their stocks plummeting, and they will sell their stocks too. And that is how a crash happens. This time that is not happening because regular people are not much into the stocks of the AI related companies which are driving up this bubble. Rather this time. It is institutional investors, hedge funds, the government and sometimes the companies themselves looping the money around and keeping the paperwork going while no money essentially changes hands. So yes, even this is a bubble and it can very likely burst, but the reason why this hasn't burst yet is the people who are supposed to run at the first alarm such as the tariffs are not there. Instead, there are powerful people who tend to lobby governments around the world for their benefit. So they can hold on for longer. And that is why this bubble is chugging along.