RE:RE:RE:RE:Any idea on price supportD*ck Cheney said "Reagan proved that deficits don't matter". In reality deficits don't matter until they do and then they really matter. Sovereign debt will balloon in the next recession and all of that debt will force rates higher and be a drag on the economy. There is a huge amount of debt globally and a lot of non-sovereign debt will implode in the next recession. How about a debt crisis?
Excerpt:
U.S. debt levels have ballooned in recent years, especially after a roughly 50% increase in federal spending between fiscal 2019 and fiscal 2021, according to the U.S. Department of the Treasury. Investors fear interest rates may keep rising as the U.S. fiscal situation worsens, hurting the demand for Treasurys
Also: Kelly Evans: If bond yields don't start dropping.... (msn.com) Excerpts: Add it all up, and you're left with a massive debt pile, continued budget deficits, and an enormous amount of global government debt on the market competing for fewer structural buyers as central bank demand has dried up. "The epic sovereign bond bubble continues to unwind," wrote Peter Boockvar of Bleakley Advisors this morning. Prices for certain poster-child debt, like Australia's 100-year long bond, have crashed by 75% from their highs.
How much worse could it get? That's what investors are getting nervous about. "Looking ahead, the real risk to the economy, including financial stability, is if weak economic data doesn't result in falling long-term interest rates," warned Apollo's Torsten Slok in a client note this morning.