The current administration and Treasury (under Bessent) are attempting to finance the massive $36 trillion national debt primarily at the short end of the curve by inducing banks to buy short-term paper through increased leverage ratios, which could unleash approximately $3 trillion in new bank carry trades.
factualpending
Speaker
Bill FleensteinEvidence Quote
“they changed the bank leverage ratio...that might unleash $3 trillion worth of basically bank carry trades”
Source
Bill Fleckenstein: We've Gone Past The Point Of No Return, Only An Epic Crisis Can Fix— The Julia La Roche ShowCreated: 8/11/2026, 5:23:30 AM
My Notes
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