Violeta 0:00

That's where I'm trying to get at. Like with AI, we don't have that luxury of boycotting. We can use these tools strategically and as ethical as possible. There's never gonna be like super ethical tools here, but I think we have to be realistic, right? Let's talk about AI and what is going on in this big thing that you keep hearing of the AI bubble. We've heard about like the housing market bubble where like house prices have become so overinflated that there was going to be a big it was creating a big bubble that was going to pop eventually. And so I want to talk about that. I have some thoughts about AI as in general, and I want to get into that. I want to use this episode as a jumping off point for that. So I want to talk about like this AI bubble, what it means, what happened, how we got here, and what it may mean in the future, and then I also want to get a little bit of kind of AI because obviously AI has two polar opposites. You know, you have people that love AI, and then you have people that really hate AI, and for good reason, right? So both sides, and I am more of in the middle, I use AI all the time for my businesses, and so I want to get a little bit over that because I know there's a lot of hate right now, and specifically for Janice from Yokiro Dinero. I think I mentioned it in some previous episodes, but she has a kind of like workshop that she is offering right now for AI agents, and I'm taking it, and of course, there was a big, massive pushback to that. And I was like, why are you supporting AI, especially when some of these companies have donated to things that are against our best interests, and so I want to get a little bit of about that, you know, because it's not all black and white, right? So, first let's get into what this whole AI bubble, because you're hearing it, you see it, it's on headlines. Matter of fact, it was recently in headlines. Uh, but before we get into that, do me a favor, make sure you like, follow, comment if you're watching on YouTube, because it really helps me grow. It's definitely difficult because speaking of AI, there's a lot of AI content out there, so I'm really competing against that. So if you want to support a quick little like, follow, or even just comment something down below what your thoughts about AI are really helps grow this podcast. And also always remember that there's a lot of resources down in the show notes. There will be links to what I talk about down there as well. So you can read some of this because I'll be referencing a few articles and things uh here, even a substack. So all that will be down below. So let's get into this episode. I'm sorry, my voice is a little bit out there. I've been getting over the plague. I don't know what I caught this past week and a half, but man, I was going through it, so I've lost a little bit of my voice, but it's coming back and I feel better. But, anyways, let's get into this AI thing. So, the most recent headline in the news has been from the Fed chair Kevin Walsh himself, and this is an article by ABC News, and this was October 16th, 2026. And the headline is Fed Chair Kevin Walsh warns of AI shock for economy pledges to contain inflation. So that right there is already is like understanding like okay, AI is going to have a negative impact in the economy. We're already dealing with inflation and all that, and so AI can also be having a negative impact. I mean, we're seeing it because of the losses of jobs, because AI is taking over lots of processes and tasks and stuff that regular people would have. So he's talking about a little bit about that, but in this case, I think he's talking specifically of the spending, right? So it says Kevin Walsh warned of a potential shock to the US economy delivered by a rise in artificial intelligence spending, right? And this is because the private sector they are spending a lot of money in accessing AI, right? They are using it for everything. I mean, even like Google, like I can't Google something without like AI stuff, and it gets a little bit frustrating. It's like it's so even YouTube, like it'll give you like an AI summary and everything. Like, it's so embedded in everything. Now, it has helped boost the US economy the recent quarters, but it's mostly because of like investments, and I want to kind of like put a pin in it of how it's also helped like small businesses, especially those who are minority-owned black and brown-owned businesses. So, I want to put a little pin on that, so it has helped in that sense, but of course, on the other side, we're losing jobs, right? And we're the first ones to kind of go, so it's kind of like a double-edged sword sometimes. This article talks about is the chip manufacturing and of course the data centers, right? There's a lot of construction going out here. I know we're fighting one in my area, and they're just popping up like crazy, right? And that's another thing that is helping balloon this AI bubble, right? It's that these companies, and this is kind of common with tech companies, like it's pretty annoying, is like it creates kind of like a race, and so they're always trying to like one up each other, and so they're all these companies are popping up with AI, and they're creating all these data centers and building them. And so you have one of the main things that is causing this AI bubble and why people are kind of like nervous and thinking that it's gonna pop soon because a lot of these tech companies they have over-leveraged themselves, right? I talk about like in my other podcast, real estate cheese may have talked about how you want to be careful to not over-leverage yourself, not get into too much debt when you are out here trying to scale with real estate investing. But these companies, like, they go ham, right? They chase all these contracts and really take on a lot of debt. And with the interest rates have gone up. Remember, we talked about in another episode of like the federal interest rates, like there was a hike, it actually went up. That means that borrowing money is more expensive, and these loans, their interest rates are increasing, and so you have that going on when they really stretch themselves thin in this race of trying to get their software and their data centers up and running, and so it's a lot of debt that these companies have. So, for example, in the Substat by Grace Blakely, again, it'll be linked down below, talks about how even Oracle is in 125 billion dollars of debt, and that is because of all these contracts, right? They've taken on all these things to build data centers, so they have so much debt. And one of the things, on top of it being more costly to borrow this money, you're seeing some pushback, right? So, for example, I mentioned a little bit earlier, my area, we're fighting data centers like crazy, right? And I live in Texas, and a lot of these tech companies are really coming out here, and because our government loves to give freebies to these tech companies to come bring them over here. And fortunately, we deal with the consequences, like the average Texan, right? And we have our power grid and all that stuff, our water, like we're in Texas, like we got droughts and stuff, so like there's a lot of pushback. So, on top of all the leaks, right? That's another thing that I want to talk about. So, you've got these data centers that are being built in these areas, and specifically in the rural areas, so they're going to compete with these resources because data centers use a lot of water because they're machines, they're computers, and you have to cool them. They have to use apparently water, right? Because that's the easiest thing, and so that's why you're having them come over here. They have incentives because Texas, like, hey, come use up our water, we'll give you like tax breaks and all this bullshit. And so they're coming over here, and so there's some pushback, there's fighting, and and so now these companies took on debt to be able to build these data centers, but now they're facing some pushback, and now they're not being able to build as quickly because now they've got to go through the legal system and all that, and maybe not even be able to build, which is hopefully the case. So now you're going to have that risk, right? Of them defaulting on that debt. On top of that, you're hearing a lot of like these serious things happening with AI. Like, so for example, this article is by Tom's Hardware, and the headline is AI agent inadvertently leaks 13,000 plus internal screenshots from 300 organizations, including Fortune 500. And this was published October 1st. So you're seeing, and we're seeing these like headlines of like AI leaking our data, so it's not even safe, and it's or it's accessing, and even in your emails, like pulling stuff that should be protected, like client information or like things that you don't want to like companies, secret information going out there into the public because of AI. So now you got that, you got the pushback from the data centers. So, like AI is taking a hit because everyone's seeing, like, you know what, we're not liking AI, not to mention it's stealing jobs, it is stealing intellectual property, and now, like, you have all this AI slop and everything out there. So, people are really angry, and so that's why you have so many people really against AI and really boycotting, and so you got a lot of that, so it's going to put a strain to these companies because they thought they could just like super fast grow and build and all this stuff, but now all this is happening, we're just getting pushback. But they have all this money that they owe, right? So that's what you have this like whole AI bubble thing, right? And so it might pop, and that's going to have a lot of negative effects, right? You have all these companies that took out money to be able to buy AI software and implement it, and then they laid off people, right? So, yeah, it's the economy will definitely take a negative hit, right? And so that is what Warsh is kind of like worried about, right? Because the feds they're responsible with the economy, inflation, and all that, right? So I guess we'll just see. It's definitely seen as heading that way. Unfortunately, I think we might be heading into this whole like too big to fail type situation, and then we'll have government bailouts costing us taxpayers some money because they made some bad poor financial decisions with their companies, right? Same thing with these stocks, right? They went and a lot of people bought stocks in these types of companies, and so those stocks are gonna drop, and the investors get paid first, and so uh you might lose some money there. So I didn't invest in AI because I kind of saw I am kind of familiar with how tech moves, like tech companies move. So I was like, no, like let me wait and see. Plus, I didn't want to fund it, and I prefer real estate, right? So that's all that's going on with the AI, right? So you hear all of this negative things about AI, and again, I want to say, like, I am kind of like in the middle. I think AI is a great tool, but the problem that we have is that we have an issue with companies doing too much, right? Like I mentioned, they try to grow too fast before they even figure out what negative effects AI can have, and to be able to work through that, and they're learning it as it goes, and it's kind of like out of control now because it's accessing everything, it's everywhere, on top of like little to very poor regulation of AI, like we should have been implementing, but because our current administration is very pro-AI, and like I don't even want to go off into a rant about that, especially with Elon and all that, like not having some regulations and rules and all that on AI is just become like you can't pull it back now, right? It's all out there, information is out there, and so it's no wonder that people are upset and don't like it. And that's typical with these tech companies, they don't give a shit, like all they care is about profit, like all making money. Like AI is a great tool to things, and we've obviously been using AI for certain things like research and models and all this stuff, right? But now it just became like a huge cash grab. And I'm gonna plug in this book and this other episode that I had. I had the author Tina Berger here of investing like a mother, and that's that she talks about that, right? Like too many times this these companies mess up a good thing, and then we get a bad taste, right? We end up like rejecting it or we take on the negative effects of those decisions because now AI is probe, right? And so I understand that I definitely get that the negative impact with our environment, and I'm definitely a pro-environment. Like, I even here in my homestead, I am making sure that I don't have basically I have a small footprint here, right? Like I obviously want to grow my own food, but I'm working with my environment because I don't want to take the homes of the roadrunners that I see, the deer, the turtles. I have some turtles back there that I didn't realize. I have some horned Texas lizards, they're so cute, they run around and they had babies, and I saw them. And so I want to protect their environment as well, right? So I'm definitely like I get that, and I'm definitely in that mindset, but I'm also realistic, right? AI is a great tool for us to catch up, and this is where I want to get into like the kind of like backlash that Janice is having with this AI by teaching the AI, by using the AI. And like we don't get to have that luxury, right? Like of choosing to not use a tool because whether we like it or not, it's being implemented everywhere, it's being used by these companies, by other people that are using it to make themselves wealthy, right? And it is a great tool for us to help to catch up, right? Now we got to use it strategically, and we can use it like as ethically as possible, but unfortunately, we live in capitalism. It's like saying, like, don't invest in the stock market, which is something that we talked about in that episode with Tina Berger, author of Invest Like a Mother. And we talk about that. It's like we're investing in the stock market through our 401ks, but we're kind of forced to, right? Because this is our retirement fund. We understand that by investing in the stock market, we can build wealth and increase our net worth and all that and build stability, gain financial freedom. I invest in real estate. I understand some of the impact as well that comes with that, but I'm also using it to like support myself and gain my financial freedom. Now we can do that as ethical as possible, like making sure that I maintain the houses, provide safe affordable housing. I'm currently in the works with trying to work with the city and figure out like how can I make a positive impact for these communities and also advocating for that. So, same thing with AI, like using AI to help yourself, right? So, with me, like I it's just me, myself, and I. AI has allowed me to really kind of create these systems that I would have to hire someone, and I understand that it's unfortunate for that person that I could have hired, but I wouldn't have been able to hire that person anyways, because I don't have those funds, right? I don't have the funds to pay someone a livable wage to do the things that I need, right? I would have to do them, so then it would stress myself out, then I it would take time away from my family. But now with AI, I'm able to automate a whole bunch of stuff, right? And that is allowing me to really grow my business so that I can focus on other things and create wealth and that I can then later in the future use to fund candidates. Like the elections, midterms are around the corner. Matter of fact, by the time this episode, it's here, right? Midterms are going on that I could donate to their platforms to help actually drive change. I could use that money to become an angel investor for another company and invest in our own community, like using that money to shop small, like support small businesses and things like that. And we can't do that if we're too kind of in our high horse and saying, like, you know what, I'm never gonna use AI, I'm just gonna struggle. And then now you're waiting five, 10 years for your businesses to take off. And that's helping nobody, that's not helping our community. These things are being used against us and learning how to take advantage of it so that way we can come up and actually have the money because money is power here. Like, that's money is what taught. Like, that's why you see all these billionaires sucking up to this administration because they're able, they have that money, they've been able to accrue all that wealth, and we don't have the luxury of time. I cannot sit here and watch my community keep getting attacked by ice and try to do it the right way by building my business. Like, that's not helping me, that's not helping my community. I could use AI to be able to allow me to buy back some of my time, grow my business, and then now I could focus on advocating for my community and all that. So there's like I know it might rub people the wrong way, right? But I think I need people to understand that it this isn't a black and white type of issue. Like, we are kind of forced to play this game, just like how I mentioned with stocks. Like, you could choose to be like, you know what, like yeah, investing in these stocks or investing in these companies like Amazon and Microsoft and all that are using their wealth, their money to lobby against my interests and further hurting me. I can choose not to invest in that, and then I suffer it either way, right? Because now, how else am I gonna make sure that I have enough money for my retirement? There's no universal health care, there's no like pensions out there, there's no social safety nets here for the most part. So I have to rely on myself, and so now I'm forced to invest in 401k in these index funds so that to make sure that I'm okay, and that's where I'm trying to get at, like with AI. We don't have that luxury of boycotting. We can use these tools strategically and as ethical as possible. There's never gonna be like super ethical tools here, there's never going to be a completely ethical way of creating wealth, but I think we have to be realistic, right? We have to be realistic of what's going on, the economy that we are in, and all that. So, like, for example, Janice, like it's just herself and her family that runs her business. Now, with AI, she's being able to buy back some of her time and look at what she's doing. She's advocating for Puerto Rico, she's doing more things and advocating and being able to invest back into our community and doing a lot of trailblazing stuff, right? She wouldn't be able to do that if she was too focused and creating like her own content and all that stuff. And I'm not saying like have it do everything, but a lot of these tasks can be automated by AI, which allows us to breathe, grow our businesses, you know, use this of the AI bubble as a kind of jumping off point because unfortunately, AI is going to be here, right? It's here to stay. There's probably gonna be like people we're gonna get frustrated, and hopefully, with the midterms goes the right way, then we'll be able to get some actual legislation done to rein in some of this AI and rein in some of this fast, rapid growth that's going to probably like hurt us in the long run. So, yeah, those are my thoughts. Tell me what you're thinking, what your thoughts are. Make sure you go vote in the midterms, especially your local elections. Don't forget about those cyber vote counts. Like, I know people want to say like it doesn't, but like they're really fighting to the nail to take that away from us. And here in Texas, we got a lot of gerrymandering going on and stuff, but obviously they're scared because I'm gonna tell you the amount of flyers that I get on a weekly basis. So that motivates me and kind of shows me, like, you know what? Obviously, they're scared, and they're trying to sway my vote, and they're trying to win my vote. So, yeah, I'm gonna end that video. I think I ranted long enough, and again, don't forget, all the information will be down below. And I will see you in the next one. Bye.