Paul Singer, founder and co-CEO of hedge fund Elliott Investment Management, said, "The current stock market situation is the most dangerous I have ever seen."
According to MarketWatch on the 26th (local time), Singer made this remark during an interview with Nikolai Tangen, CEO of the Norwegian sovereign wealth fund, saying, "Leverage is increasingly building up."
He added, "This situation also applies to governments. It is truly astonishing that negative interest rate policies have been implemented in Europe, Japan, and Switzerland. And in the U.S., the zero interest rate policy has been maintained for 10 years. This is absurd."
He pointed out that this has caused a dangerous complacency stemming from the belief that governments or the Federal Reserve (Fed) will come to the rescue at any time.
He also expressed doubts about whether the massive investments by big tech in artificial intelligence (AI) will ultimately pay off.
Singer said, "From the perspective that AI provides practical value to users, it has surpassed its limits. AI is being used and will be used more in the future, but there is an exaggerated aspect to it."
He also revealed his view that the Trump administration's acceptance of cryptocurrency poses a risk of weakening the dollar's status as the global reserve currency. He said, "The U.S. government's support of cryptocurrency could affect the U.S. dollar's status as the world's reserve currency. It is somewhat difficult to understand."
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