An economist who studies financial crises now sees a leverage-induced US recession by year-end

Economist Tuomas Malinen, who studies financial crises, has updated his forecast to predict a US recession by the end of 2026 or early 2027. He cites extreme leverage in the financial system, including corporate debt and margin borrowing, as triggers. Malinen suggests the downturn could resemble the recession of the early 1990s. His warning comes amid ongoing concerns about debt levels.

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