Jason Calacanis

It made the market tank on Monday.

In this fictional Substack post, the author said there's going to be essentially a death spiral that happens because of AI.

In this fictional Substack post, the author said there's going to be essentially a death spiral that happens because of AI.

How does that work?

How does that work?

Well, first, companies embrace AI.

Well, first, companies embrace AI.

Everything goes right.

Everything goes right.

They're able to cut staff.

They're able to cut staff.

Their margins go up, similar to how Amazon has

Their margins go up, similar to how Amazon has

you know, trimmed their white collar staff, then they're so successful at this that they lose their customer base, because consumers don't have discretionary funding to spend, then the creates a debt spiral where the companies keep deploying AI to try to hit the margins cutting staff and the entire economy collapses, Dr. Doom level stuff, unemployment at 10% S&P goes down from 38% highs

you know, trimmed their white collar staff, then they're so successful at this that they lose their customer base, because consumers don't have discretionary funding to spend, then the creates a debt spiral where the companies keep deploying AI to try to hit the margins cutting staff and the entire economy collapses, Dr. Doom level stuff, unemployment at 10% S&P goes down from 38% highs

After this piece came out, which speculated that agents would get rid of all the 3% interchange fees and move everybody to settle transactions on stable coins, all the financial stocks got hit on Monday.

After this piece came out, which speculated that agents would get rid of all the 3% interchange fees and move everybody to settle transactions on stable coins, all the financial stocks got hit on Monday.

Amex down 8%, Capital One down 8%, MasterCard 6% fees of 4%, yada, yada.

Amex down 8%, Capital One down 8%, MasterCard 6% fees of 4%, yada, yada.

Finally, this piece got a lot of pushback.