The One Big Beautiful Bill Act (OBBBA) is making its way through the Senate and – if the government can overcome the resistance from a growing number of Senators – will become law in July.
looking back at Bill Clinton's woes is an exercise in nostalgia. He wanted to embark on a massive infrastructure bill yet reduce the deficit by half, but the bond vigilantes weren't willing to play ball with that idea, so he had to give up the first part of that plan.
Now, all Trump wants is to just get away with increasing the deficit by a massive amount so that rich folks can pay less taxes, in other words a kind of half-assed Reagan V.2.. And yet it's unclear whether he'll just end up as a supersized Liz Truss. History repeats as farce, as somebody said back in the day.
If/when there is a meltdown in Treasury markets, will it be like the Great Financial Crash- the market will seize up and panic ensues? This making America great again is going really really well eh?
Nobody really knows what will happen if the US has a Liz Truss moment. There is a case to be made it could be worse than the financial crisis. There is also a case to be made that the Fed could rescue the whole system within 24 hours and it is hardly an issue.
Thank you for the clarification. As a reserve currency this is not a good look and potentially very worrying. I'm amazed this is not a bigger issue. Thank you for being the canary in the cave! As both parties are addicted to gorging on debt, and both heads of parties are chosen by billionaire oligarchs that won't stomach tax cuts for the rich, it is likely to only get worse...
“How did you go bankrupt?” Bill asked.
“Two ways,” Mike said. “Gradually and then suddenly.”
-- Ernest Hemingway, The Sun Also Rises, 1926
looking back at Bill Clinton's woes is an exercise in nostalgia. He wanted to embark on a massive infrastructure bill yet reduce the deficit by half, but the bond vigilantes weren't willing to play ball with that idea, so he had to give up the first part of that plan.
Now, all Trump wants is to just get away with increasing the deficit by a massive amount so that rich folks can pay less taxes, in other words a kind of half-assed Reagan V.2.. And yet it's unclear whether he'll just end up as a supersized Liz Truss. History repeats as farce, as somebody said back in the day.
If/when there is a meltdown in Treasury markets, will it be like the Great Financial Crash- the market will seize up and panic ensues? This making America great again is going really really well eh?
Nobody really knows what will happen if the US has a Liz Truss moment. There is a case to be made it could be worse than the financial crisis. There is also a case to be made that the Fed could rescue the whole system within 24 hours and it is hardly an issue.
Thank you for the clarification. As a reserve currency this is not a good look and potentially very worrying. I'm amazed this is not a bigger issue. Thank you for being the canary in the cave! As both parties are addicted to gorging on debt, and both heads of parties are chosen by billionaire oligarchs that won't stomach tax cuts for the rich, it is likely to only get worse...
Oh, in the world of professional investors, this is very much an issue. It's the number one topic people are talking about.
Actually it’s going great
Liz Truss, 25 September 2022...
Sounds like we’re riding a financial rollercoaster with this debt stuff—better hold on tight before the crash. Gotta keep an eye on those yields.