Former IMF Chief Warns of AI-Driven Market Euphoria Leading to $35 Trillion Global Crash Risk
Gita Gopinath, former IMF Deputy Managing Director, has issued a stark warning about the disconnect between the current U.S. market rally and underlying economic fundamentals. The surge, largely fueled by artificial intelligence hype, could trigger a violent correction wiping out $35 trillion in global asset values.
Institutional and retail investors alike face unprecedented exposure. The potential collapse would Ripple through the real economy, with no sector insulated from the fallout. Markets are trading on speculative tech narratives rather than tangible growth metrics.
This echoes historical patterns where financial euphoria preceded systemic collapses. The warning comes as cryptocurrency markets already reel from recent geopolitical shocks, demonstrating the fragility of asset classes detached from traditional valuation anchors.
