“…Wharton professor sees $34 trillion debt triggering 2025 meltdown as mortgage rates spike above 7%: ‘It could derail the next administration’”
March 7, 2024
“…Gomes predicts America’s $34 trillion debt burden may upset the world’s financial markets as early as next year—should a president-elect announce a raft of expensive policies.
And remember the UK’s mortgage meltdown following a disastrous premiership under Prime Minister Liz Truss? That’s on the cards as well, as Gomes said rates could spiral to 7% “or higher” if the topic is swept under the rug by Washington.
The warning isn’t chiming alone. Since the beginning of the year an increasing cacophony of alarm bells has been ringing out: JPMorgan Chase CEO Jamie Dimon says there will be a market “rebellion” over the issue while Bank of America CEO Brian Moynihan says it’s time to stop “admiring” the problem and instead do something about it.
This fear is echoing outside of Wall Street, too. The Black Swan author Nassim Taleb says the economy is in a “death spiral,” while Fed Chairman Jerome Powell says it’s past time to have an “adult conversation” about fiscal responsibility…”
https://www.msn.com/en-us/money/markets/ar-BB1jfnRI
It’s not “could” derail. It will derail. Don’t be surprised if the economy is used as a weapon in politics just like everything else is. In this day and age even the judicial system is weaponized against political opponents. Don’t be surprised if one side of the aisle decides to hold the economy hostage as well.