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Two former U.S. Treasury secretaries who led the department during the 2008 global financial crisis cautioned that the $29 trillion market for U.S. government debt is becoming increasingly vulnerable. They cited Washington’s mounting fiscal imbalance and persistent political gridlock as key threats that could undermine confidence in Treasuries. Henry Paulson, who served in the Bush administration, urged policymakers to develop a fiscal contingency plan, warning that he does not know when U.S. debt could “hit the wall.” Both former officials described the current fiscal path as “unsustainable,” arguing that failure to address the budget outlook could destabilize the world’s largest bond market.
Friendly reminder that the GFC wasn’t a home price bust at its core. It was a financial product implosion brought to you in large part by Larry Summers and Alan Greenspan. Yes, oversupply was clearly an issue but the primary trigger was the sudden breaking of global credit https://t.co/iRZNv9oJaG
The two US Treasury chiefs in office during the global financial crisis warned about potential threats to the $29 trillion Treasuries market ranging from an unsustainable fiscal path to concerns about the political system in Washington. “Our current trajectory is unsustainable”
The two US Treasury chiefs in office during the global financial crisis warned about potential threats to the $29 trillion Treasuries market ranging from an unsustainable fiscal path to concerns about the political system in Washington https://t.co/PGtKQouT2i
