Public Debt Levels Look More Worrying Than Before Lehman Crisis: Trichet

I am a little bit more worrying on the stock market on both sides of the Atlantic and everywhere, taking into account the present dangerousity of the economic and financial sphere. When I look at some indicators, like the overall outstanding public indebtedness in the advanced economy, I see 75% of the GDP before Lehman and I see 114% today. Meaning that we have an indicator that is, I would say, more worrying than it was before Lehman, before the big financial crisis. So I I don’t want to be too negative, but I am circumspect if I may. I I think we have to care for the dangerousity of the world. Jean Claude, Is there a little too much irrational exuberance in stocks? That’s, I don’t exclude that, I don’t exclude that and we have some I would say. A number of factor that are playing in this direction, including of course a fantastic AI jump that we are observing and also the fact that the central banks did the work quite well until now. We have to say it is quite remarkable that we totally avoided the, I would say, expansion, the drama of the inflationary. Episode that we had after the first and the second oil shock. So I I I trust that the central banks, the Fed, the ECB did quite well, quite well, to prevent us from having this kind of drama. And of course it is judged positively by assets markets. That being said, again, it seems to me that maybe a correction will appear necessary at a certain time and I would not be surprised if we are observing that.