In a world where social media often blurs the lines between entertainment and absurdity, some individuals have mastered the art of captivating audiences in unconventional ways. One such figure is Jack Vale, an average-looking man with a knack for mischief that has gained him widespread attention online. This article delves into Vale’s antics, the realities of speculative investments, and the current state of financial markets, particularly regarding artificial intelligence.
Jack Vale presents himself as an ordinary middle-aged man. He could easily be mistaken for the friendly fellow in a flannel shirt, selling charcoal at your neighborhood hardware store, offering barbecue tips. Yet, behind this unassuming façade lies a mischievous spirit that engages in unconventional public pranks.
Each week, Vale makes his way to Walmart, but instead of purchasing everyday items, he chooses to prank unsuspecting shoppers by farting near them. His son discreetly records these antics using a hidden camera, and then Vale shares the footage on YouTube, where he has amassed over 1.8 million subscribers, turning his antics into a lucrative venture.
Vale’s “farts” are not real; he employs a gag toy he invented called The Pooter to create the sound. The reactions from those he pranks vary from laughter to outrage. As Vale notes in his YouTube channel’s description, “I like when people laugh.”
While it’s true that Vale could channel his talents into more constructive activities, such as farming or resource extraction—activities that generate tangible wealth—he still operates within a framework of harmless fun. Unlike many in positions of political influence, Vale doesn’t exploit or manipulate others; he merely revels in the laughter his antics elicit.
The nature of Vale’s escapades serves as a metaphor for the current climate in the financial markets, particularly as we witness the unwinding of speculative bubbles. Here’s how it all connects:
Art Fart
Speculative manias often proliferate through the expansion of credit and liquidity. Historical examples reveal consistent arcs in these speculative bubbles. Take, for instance, the tulip mania in the Netherlands in the 1630s, which was fueled by excessive personal credit, leading sellers to sell bulbs without owning them. Similarly, John Law’s Mississippi Bubble expanded through paper currency, and the housing market boom from 2003 to 2007 thrived on subprime loans and mortgage-backed securities.
Objects of speculation vary from canals to railroads to stocks, yet the manias typically follow similar rise-and-fall patterns. Art, particularly digital art like NFTs (non-fungible tokens), has also been a source of speculation. In 2021, affluence from cheap credit resulted in an NFT frenzy, with creations like Grimes’ “WarNymph”, fetching $5.8 million, while a group of evangelists burned Banksy’s “Morons” and transformed it into an NFT for a $380,000 profit.
However, as markets corrected in 2022, the allure of NFTs diminished, yet the inherent drive for speculative ventures persisted.
Life Imitates (F)art
As optimism surged in the stock market in 2023 and 2024, fueled by the promise of artificial intelligence, cryptocurrency also experienced wild flights. Bitcoin soared from $17,000 in December 2022 to over $100,000 early in 2024.
During this frenzy, meme coins—cryptocurrencies designed primarily for entertainment—appeared in abundance. Although most lack genuine use or value, their appeal lies in comic relief and speculative possibilities. This environment birthed Fartcoin, a cryptocurrency bearing a whimsical name that caught attention.
On election day, November 5, 2024, Fartcoin traded at $0.06 but inexplicably skyrocketed to $2.52 by January 19, reflecting a staggering 4,100 percent increase and a market cap of $2.5 billion. Despite subsequently dropping to $1.23, it maintained a valuation exceeding $1.2 billion.
While Fartcoin may seem trivial, its inflated value underscores a speculative mania nearing its peak—a sentiment echoed by investor David Einhorn, who remarked, “We have reached the ‘Fartcoin’ stage of the market cycle.”
Silent But Deadly
When President Trump took office on January 20, 2024, investors were hopeful that his tax cuts and pro-business policies would sustain the AI-driven bull market. However, just one day later, Trump appeared alongside tech luminaries at the White House to unveil a new venture called Stargate, aiming to inject $500 billion into domestic job creation in AI.
Several days later, it was reported that a Chinese company, DeepSeek, had unveiled an AI model that rivals OpenAI’s offerings at a significantly lower cost and with reduced computing requirements. This posed a considerable challenge to U.S. dominance in the AI sector, jeopardizing the lofty valuations of “Magnificent Seven” stocks.
This revelation caught Wall Street off guard, resulting in a 16.9 percent decline in Nvidia shares that still has not recovered. Amid accusations that DeepSeek may have utilized OpenAI’s models for training, investors face uncertainty at a time when prudent inquiry is crucial.
Prior to DeepSeek’s entry, signs of an overextended market already existed, with vast amounts of capital misallocated in the AI sector. Sequoia even predicted that the AI industry would need $600 billion in revenue to justify existing investments, while estimated revenue stood at about 10 percent of that figure.
The unsustainable valuations had been in place long before DeepSeek’s emergence. The NASDAQ and S&P 500 were demonstrating signs of significant overvaluation, priming the market for a downturn.
As we move forward, remain cautious of potential market corrections and the various absurdities at play.
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Sincerely,
MN Gordon
for Economic Prism
