Billionaire Ken Griffin Warns 'Recklessness Of Government Spending' Is The Primary Risk To Markets And Global Stability - BlackRock (NYSE:BLK), First Trust DJ Internet Index Fund (ARCA:FDN)

Core Viewpoint - Ken Griffin, founder of Citadel, emphasized that unchecked sovereign debt poses the greatest threat to financial stability by 2026, rather than private market speculation [1] Group 1: Public Debt Concerns - Griffin highlighted the alarming rise in U.S. national debt, which currently stands at approximately $38 trillion, with $30.824 trillion held by the public and $7.66 trillion in intragovernmental holdings [2][3] - He criticized global government spending as reckless, contrasting it with the private capital risks that characterized the 1920s [2][3] - Christine Lagarde warned against fiscal dependency on central banks, stating that borrowing without a sustainable growth plan could lead to societal dislocation [3] Group 2: AI and Economic Growth - The panel discussed whether the anticipated productivity boost from artificial intelligence (AI) could counterbalance rising deficits, with Griffin expressing skepticism about AI being a guaranteed solution to fiscal irresponsibility [4] - Griffin noted the uncertainty surrounding the economic benefits of AI, despite the industry's need for significant hype to fund infrastructure costs [4] Group 3: Protectionism and Geopolitical Fragmentation - Griffin raised concerns about the resurgence of protectionism, indicating that new tariff regimes could harm consumers and foster cronyism [5] - Lagarde added that geopolitical fragmentation threatens essential cross-border cooperation needed for scaling AI technologies, which could hinder economic recovery [6] Group 4: AI-Linked ETFs Performance - The performance of various AI-linked ETFs was presented, showing mixed results over different time frames, with some ETFs like Defiance Quantum ETF achieving a one-year performance of 38.31% [7][8]