Filenews 10 November 2025
At a time when the indicators of the global economy show stability, behind the scenes the shadows are starting to thicken. A few days ago, the president of the World Economic Forum, Borge Brede, warned of three possible "bubbles" that could disrupt the fragile balance of the post-pandemic period. Mr. Brente is targeting cryptocurrencies, artificial intelligence and public debt.
A trio that, although heterogeneous, shares a common feature, as POF notes, exaggeration. "We can see three bubbles forming, one in cryptocurrencies, one in artificial intelligence and one in debt," Brente told Reuters. "Public debt is at its highest level since 1945." This phrase captures the anxiety that runs through the institutions. Analysts are concerned that the global economy may continue to grow, but financial tension may undermine stability in a sudden and unpredictable way.
"We can see three bubbles forming, one in cryptocurrencies, one in artificial intelligence and one in debt," Brente told Reuters. "Public debt is at its highest level since 1945." This phrase captures the anxiety that runs through the institutions. Analysts are concerned that the global economy may continue to grow, but financial tension may undermine stability in a sudden and unpredictable way.
According to the latest IMF data, global debt now stands at $313 trillion dollars, of which about two-thirds are state-owned. In Europe, the average debt-to-GDP ratio remains above 90%. Despite improving lending rates for strong economies, servicing costs are rising at rates that are starting to worry even the most dispassionate analysts.
The case of the USA, where the federal debt exceeded $35 trillion. dollars, brings back the question of the "macroeconomic tolerance limit". The question is, how much debt can the global economy withstand without a crisis of confidence? POF, without dramatizing, reminds that these balances are often spoiled not by the change of figures, but by the loss of faith of the markets.
The second warning signal concerns artificial intelligence. The AI economy is experiencing a golden moment with investments in 2024-25 exceeding $240 billion and the capitalizations of large technology companies reaching 90s levels. But the market itself shows signs of overconcentration, with five companies controlling almost 70% of patents and computing power, and profitability that still does not justify valuation. For Europe, however, the problem is twofold, as it lags technologically behind the US, while it depends on American innovative ecosystems. If the bubble bursts, the continent risks paying the price without having benefited from the profits.
Europe in the age of exaggeration
The common thread between the three phenomena is the overaccumulation of expectations – and the difficulty of institutions to tame the tendency to exaggerate. Europe, with limited fiscal space and a delayed transition to the digital and green economy, is particularly vulnerable to external shocks. If there is a sharp correction in either the technological or financial sectors, the impact on valuations, investment and credit flow will be immediate. The POF's warning is a reminder that crises rarely erupt in times of recession, usually born in phases of economic euphoria. The combination of cheap money, technological enthusiasm and political pressure for growth creates fertile ground for distortions. The point is not to predict when, but to recognize where.
Source: ot.gr
