Jeff Cox wonders aloud…
Picture this: The bond market gets spooked by a sudden interest rate scare, sending a throng of buyers streaming toward the exits, only to find a dearth of buyers on the other side.
As a result, liquidity evaporates, yields soar, and the U.S. finds itself smack in the middle of another debt crisis no one saw coming.
No one, Kemosabe? I’ve been warning for years that absent the Fed, there’s not enough market demand to soak up our new debt and to refi our old debt.