Yeah, and "industrialization" was a bubble too, leading to the Panic of 1837. Leading up to 1857, railroads were hot. Every railroad company was receiving large loans and investment from banks, most never actually ended up building useful railways. The following lines and railroad companies were shutdown by 1858: * Illinois Central * Erie * Pittsburgh, Fort Wayne, and Chicago (PRR) * Reading Railroad * Delaware, Lackawanna and Western * Fond Du Loc The issue is concentration. When investment is all placed in one sector it is often at the expense of investing in other sectors. These other areas experience underinvestment while (AI, in the current case) hoovers up all available money. Eventually, the other areas start to give. These other areas are often the ones providing real actual returns to fund the speculation in the new, hot sector. Then it all comes apart like a house of cards. In the long run, there is still obvious value (industrialization, railroads, the internet, and now AI) but there is almost always a huge correction/fall before we reach an equilibrium.

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