The AI boom has turned the standard profit margin model on its head, according to Apollo Chief Economist Torsten Slok—and it’s making the industry’s growth unsustainable.
Back in the before times we called that a ‘dividend’ and the company would pay you one of they did business well and made profit.
Then the dark times came and the ‘speculators’ arrived, caring not for the dividend but for the price itself. Expecting it to go ever on up. The dividend was forgotten.
Business didn’t have to be good and profitable it just had to have ‘promise’ and ‘venture’. They propped each other up, made their prices up. Each leaning on each other with no foundation each nor to share. They cared not, for they had a ‘system’ and means already their own to sustain themselves.
The people looked on in horror, knowing the ‘bubble’ must burst in the air and not settle gently to the ground and rest easy. Power they had not, only the ‘sight’ of their incoming doom.
Back in the before times we called that a ‘dividend’ and the company would pay you one of they did business well and made profit.
Then the dark times came and the ‘speculators’ arrived, caring not for the dividend but for the price itself. Expecting it to go ever on up. The dividend was forgotten.
Business didn’t have to be good and profitable it just had to have ‘promise’ and ‘venture’. They propped each other up, made their prices up. Each leaning on each other with no foundation each nor to share. They cared not, for they had a ‘system’ and means already their own to sustain themselves.
The people looked on in horror, knowing the ‘bubble’ must burst in the air and not settle gently to the ground and rest easy. Power they had not, only the ‘sight’ of their incoming doom.