We’d all like to think that but what usually happens is that the ultra wealthy lose a quarter or half their wealth, which makes no difference to anyone because they are so massively wealthy … everyone else lose everything
Comment on A tangled web of deals stokes AI bubble fears in Silicon Valley
lowleekun@ani.social 1 month ago
I hope that at least some rich people lose it all.
ininewcrow@lemmy.ca 1 month ago
Perspectivist@feddit.uk 1 month ago
Basically, the only way to truly “lose it all” in a market crash is if you’re all-in on a company that goes under - or if you actually own that company. Most investors don’t really lose anything. Their portfolio value drops for a while, but if they can wait it out, it usually recovers within a year or so.
When you hear about people losing their savings in a market crash, it’s usually because they panic-sold at a loss. Even then, they don’t lose everything - just a portion. People like me, who invest for the long term and mostly in highly diversified index funds, are more or less unaffected. We’re not planning to sell for decades anyway. If anything, we’ll just buy more for a discount.
Not that I’m rich or anything but the point is that rich people generally aren’t stupid when it comes to finances - otherwise they wouldn’t be rich. It’s the people who don’t know better who take the hit.
bystander@lemmy.ca 1 month ago
Rich people (top 10-20%) are either financially smart or have financially smart people advising them. They will be well diversified in all asset classes. And will have a lot of liquid capital ready to buy after the bubble bursts. And also keep themselves fat and well fed. The wealth transfers up.
lowleekun@ani.social 1 month ago
You are of course right as enough market crashes and crisis have shown.
In the end it will have to be too miserable for a large percentage of the population with enough freedom to resist. Sadly governments everywhere are working very hard at mitigating the possibilities of resistance.
Midnitte@beehaw.org 1 month ago
Vastly more poor people will be affected, and those rich people that aren’t willing just buy everything up on sale, further hoarding wealth.
lowleekun@ani.social 1 month ago
You don’t have to tell me. What we have to do is eat those fuckers.
We all know the U.S. (put Germany in there too) is fucked beyond repair but revolution or civil war will have to wait until further suffering for the poor i guess. Nothing is going to happen until huge swaths of the middle class can’t take it any longer and stop shielding the parasites.