Central banks are warning that AI leverage is the real risk, not just the valuations
The IMF, BIS, and Bank of England have each warned this month that AI leverage poses a greater systemic threat than stretched valuations alone. With US margin debt at a record $1.4 trillion and leveraged ETF assets doubling in under 70 days, the risk isn't a slow correction but a forced deleveraging cascade that could move faster than 2008.