Media reports argue that the AI bubble in China is already bursting, with AI stocks losing nearly half a trillion in the past few months.

Does this mean computers will finally be cheaper now?

Also I assume this means the US bubble has burst too and but they’re doing what western capitalists do and lie about the economy as to not scare investors “Don’t say recession!” and all that.

  • OutrageousHairdo [he/him]@hexbear.netEnglish
    19·
    15 days ago

    I saw a fair few articles on sixth tone about people forced to live in the unfinished buildings they pre-purchased after the people who were supposed to build it went under, so it did hurt ordinary people.

    • Feed_el_Castro [he/him, comrade/them]@hexbear.netEnglish
      26·
      15 days ago

      Have you seen articles about the billions spent in government programmes ensuring the housing was finished after the crash, and how the government stepped up and helped the people this way instead of letting them hold the bag?

      • OutrageousHairdo [he/him]@hexbear.netEnglish
        15·
        15 days ago

        I did, there were a few cases I read about where straight up the government gave more money to the builders and then they just ran off with the extra cash after barely doing anything, but I was reading about that when the wound was more fresh. It wasn’t a great situation regardless, and while it’s certainly better than doing nothing, costing the government billions of dollars to clean up the mess left behind by these corporations is not good. Bailing out the people who got caught up in this was good, but it’d be better if you didn’t have to bail out anyone in the first place.

        • Feed_el_Castro [he/him, comrade/them]@hexbear.netEnglish
          22·
          15 days ago

          Well yeah, ideally the Soviet model of housing would be applied, where you don’t have to advance any money at all and you’re granted housing by your work union based on proximity to workplace and by need, making everything more efficient and 100% removing uncertainty from people, I consider myself a Bolshevik and not a Dengist. It’s still the socialist model in existence today, and the best in the world as things are (besides Cuba) in terms of material access to housing, and while it’s good to engage in critical analysis it’s also important to remember that the majority of people who got shafted already have had their home built.

          costing the government billions of dollars

          Fortunately the Chinese government pays builders in RMB, not in dollars, and the central bank of China can create unlimited amounts of RMB. The government spending that money on housing doesn’t imply that the money isn’t going somewhere else, because states don’t function as private economic actors with limited spending capability. Also, the president of Evergrande has been sentenced to maximum prison sentence.

    • ShimmeringKoi [comrade/them]@hexbear.netEnglish
      12·
      15 days ago

      Obviously that sucks mega ass but I also wonder what the logistical situation becomes in that case. If you have to finish your home according to the plan that was interrupted, or if you can freestyle it to an extent