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The Bank for International Settlements warns that high debt levels, the artificial intelligence boom, and financial fragilities are raising global economic risks. The BIS report highlights vulnerabilities in the financial system that could amplify shocks. Central banks face challenges managing these interconnected threats.
The Bank for International Settlements warned that an AI investment bust could disrupt credit markets as severely as the 2008 financial crisis. Its annual report flagged circular financing and poorly disclosed risks in deals between chipmakers, hyperscalers, and AI labs as specific vulnerabilities demanding attention.
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