> Regular people are not leveraged into AI startups today
this isn't accurate. as an example, anyone with a 401k will be affected by the stock market and the stock market is mostly tech, and tech has bet the house on ai
Peoples' 401k will go down, but its not like they were relying on their 401k day to day (unless you retired right when LLMs got huge, i guess?). They won't directly feel it.
"Your 401k should never go down at all" is not a realistic expectation.
Hopefully, people who need to pull from their 401k's soon have wound down to less risky positions. 401k exposure is just not the same thing as your house valuation tanking.
i used 401ks here as one example. but if your company has to downsize due to exposure, that means you're out of a job.
Temporarily. The market goes up and down for all kinds of reasons. Long term though it’s never failed to go up and to the right.
For certain values of temporarily. On human time scales, we do see bear markets which last a decade or longer, and that can have a serious impact on someone's earning ability or retirement.
Markets do include significant risk and we would do well to remember that.