The U.S.’s heavy reliance on government debt is unsustainable and could weaken economic growth and corporate profits, according to market strategist Ruchir Sharma, Chair of Rockefeller International. In the Financial Times, Sharma reiterated his "mother of all bubbles" warning, highlighting that U.S. economic outperformance is at risk of collapse. Sharma noted that current "supernormal profits," bolstered by unprecedented deficit spending, are unsustainable. U.S. debt held by the public is near 100% of GDP and is projected to surpass post-World War II levels. With U.S. stock prices sharply outperforming, Sharma described the market as being in the late stages of a bubble, suggesting the "end is near."
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02US's heavy reliance on government debt is unsustainable and could weaken economic
00:06growth and corporate profit. This according to market strategist Ruchashir Sharma,
00:10chair of Rockefeller International. Writing in Financial Times, Sharma reiterated his
00:16mother of all bubbles warning, highlighting that US economic outperformance is at risk of collapse.
00:22Sharma noted that current supernormal profits bolstered by unprecedented deficit spending
00:27are unsustainable. US debt held by the public is near 100% of GDP and is projected to surpass
00:33post-World War II levels. With US stock prices sharply outperforming,
00:37Sharma described the market as being in the late stages of a bubble, suggesting the end is near.