by Jeffrey Snider
The debt ceiling has nothing to do with it, either. Like 2011, if it does come into play what that would mean is money market funds selling whichever instrument might come due around the estimated time the government runs out of borrowing capacity. Yields would pop up a little (like they also did in October 2013, and very briefly in September 2017), not go way down.
Going way down as they have consistently from the middle of last month is, not hyperbole, more 2008 than even 2011.
- Jeremy Grantham expects US house prices to slide over the next few years.
- The GMO cofounder sees the S&P 500 plunging as low as 2,000 points, a 52% drop.
- The elite investor warns the recent banking turmoil may strain other parts of the financial system.
h/t mark000
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