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Hello and welcome to this week's Better Offline monologue.

I'm your host at Zittron.

That's awesome.

That's right, it's your second damn monologue this week, but next week we're going to have an awesome guest, economist Paul Kodroski, and no doubt some sort of news will break that will make next week's monologue even spicier than this one, and man is this spicy.

Anyway, earlier this week, I put out a free newsletter about the subprime AI crisis,

my ongoing theory that as AI companies strive to try and make their rotten economics work,

they'll have to start cranking up the price and making rate limits worse and generally trying to move things around to make these products anything close to profitable,

but they won't even get close.

Now, take a little history trip.

That's what I'm calling it. When the subprime crisis happened, the subcrime mortgage crisis,

of course, millions of people built their lives around the idea that easy money would always be

available, and that anyone could get a mortgage and that housing would only ever increase in

value.

In reality, the value of housing was massively overinflated by the lax standards of a mortgage industry incentivized the sign as many people as possible thanks to a lack of regulation and

easily available funding.

The value of housing, and indeed the larger housing and construction boom was a mirage.

In reality, housing wasn't worth anywhere near what it was being solved for,

and the massive demand for housing was only possible with unlimited resources and lacks, well, underwriting,

which is the process of evaluating whether someone can get a house.

...