It is 'nearly unavoidable' that AI will cause a financial crash within a decade, SEC head says

Gosh, maybe legalized gambling is not a good way to run an economy?

Honestly hoping something like this happens in residential real estate, if it isn’t happening already. Housing is well overdue for a correction.

You can’t tell me that most people can afford a $400,000-$700,000 mortgage. Median incomes don’t support that price point. Median household incomes might support the lower end…barely. So I am starting to wonder just who is buying/selling all these houses. When I see a $600,000 “average” house last 3 days on the market and then sell for $760,000…I have questions.

I traded in a 2014 Toyota hatchback to Carmax and got an Audi A3 when the algorithms went haywire. It didn’t cover the whole cost but it was a silly enough trade that I thought for sure someone would call me and say it was a computer error.

While that's really interesting, there was a lot more at play than a pricing algorithm. It was a culmination of a lot of things, starting with Cash for Clunkers that had a huge impact on the used car market. Then there were a ton of supply chain issues during COVID that squeezed the new car market. Probably some other factors I'm not aware of, too.

My 2013 Prius got totaled around the peak of this. I wanted to just replace it with the exact same model, because it's a good car. It would have been cheaper to buy brand new one at the time. I got a new electric car instead and with the $7k tax rebate ended up spending less than I would have to buy a 9 year old Prius.

He has a good point as this monoculture of systems and models would very greatly amplify any market imbalance and defects, at a speed human bank managers would only realize when getting notified of their impending bankruptcy

It was pretty bananas for a minute. The Mazda dealership offered us 5,000 more than we paid brand new for my wife’s Mazda 3 in 2018. I told the salesperson that it makes no fucking sense and he couldn’t explain it either. Didn’t go for it for a bunch of reasons but it was really odd.

My mom's 2020 Fit at the top trim level sold new for roughly 20k. Her lease buyout price was 1/2 the cost of an entry Fit in the same year with 30k miles (going for 25k at the time)

AI isn't a bubble. The futurist/Rationalist/transhumanist communities were saying what's happening now would happen in a few years about a decade ago, and our predictions are that the next phase is AI taking over all labor through sophisticated automation. We've been trying to warn everyone about this since the advent of Google Deep Dream, but sure stick your head in the sand again and let the world burn around you; it's worked so well so far.

This comment will probably get bombed, but w/e. 🤷‍♂️ Go ahead and be ignorant and angry at me, I'm used to it.

Edit: yes I am bitter. I've had a bad day, and I'm annoyed.

That’s an economist level reply right there

Sounds like playing Zomboid.

Better spread out that wage increase over a reasonable period of time, like 10-25 years. Wouldn't want to burden the precious job creators out there.

/s

50¢? Whoa now you arent trying to send us down the road of commies now are ya?

Better cut that raise in half at least

Well if we can't tax 'em we could always literally eat them, and if we can't afford food thanks to them killing the good paying jobs then maybe we will just have to eat them literally if we can't tax them properly.

But, you know, after the economy revives by state simping for the private banks, maybe we'll discuss it then

I love how they always mention the autism, as if being a mathematical genius is a common symptom, rather than just being able to remember every episode of Naruto.

I also think the term is granted way too much prestige, but a bit over a decade ago people also laughed at the notion of "Social Media Manager" being a real, high paying job

Who knows where this stuff will go

I just applied for a Prompt Engineer job last week!

I have... feelings about LLMs being the big thing in AI/ml right now.... because its really not much new. Maybe the transformer model kind of but ultimately LLMs are massive supervised learning neural nets trained on obscene amounts of data. And then other models use that pretrained "foundational model" to work and just tune their parameters. Which is why prompt engineer is becoming a thing.

Corpos are playing by the book here and trying to extinguish any competition before it begins by having people rely on their "foundation" models instead of innovating their own solutions

How many tutorials can you find for implementing LLM NLP tasks that dont include "import this model from X company" id wager its only maybe 33%

Bingo. The super-rich love a financial collapse, it gives them a golden opportunity to turn disaster capitalist. All those foreclosed homes & businesses available at a knockdown price, nom nom nom.

I need to get off lemmy. Too many teenagers on here with their "burn it all down"s and "trust me, I have a super easy solution to a giant complex problem that has been plaguing humanity for generarions"s and "the bad guys are actually good guys, lol I'm so edgy"s

So, how do we engineer a situation in which the richest suffer most? End of capitalism?

For me personally it's not that I want to downplay it, it's that I want to balance the scales. I see far more over-estimating of AI happening than downplaying.

The current form of AI is great as a tool and sadly there are definitely jobs out there that are nearly completely replaced by this tool. But that scope isn't about to change much based on where we are currently at. Many jobs require actual intelligence to make judgment calls, and the current form of AI just isn't going to cut it here as it has no real intelligence.

Of course, that won't stop dumb business leaders from still trying to use AI here, but that's an error in judgment that imo will correct itself over time.

perhaps, but they are wrong about a lot