The author is a former Minister of Finance.
In this section, we have already written about the bubble on the American capital market. In many ways, it resembles the dot-com bubble, which inflated at the turn of the millennium and burst in 2001. The current one is primarily inflated by investments in artificial intelligence.
These days, my favorite author Ruchir Sharma, CEO of Rockefeller Capital Management and author of several books on the world economy, commented on this bubble in several American media (for example, here).
Sharma refers to the current situation as 4O (over valuation, over investment, over leverage and over ownership), i.e. too high share prices, too high investments, too high leverage (i.e. debt) and too high level of share ownership in the hands of households.
Let’s look at it more specifically now.
We will talk about stock prices, investments, debt investing and stock ownership per se, but
