In 2010, the European bond crisis was a stock problem of investors selling already-issued bonds from their portfolios, not just a flow problem of deficits, and this stock problem will recur when US deficits are finally constrained.
causalpending
Speaker
Danielle LaalEvidence Quote
“the problem that you saw in 2010 that manifested in 2011 was a stock problem is when investors started to sell their European bonds the ones that they had already issued and were already in their books not a problem of it was not just a problem of flow IE deficit financing every year it was a problem of investors saying I don't want to have the bonds that I had already collected in my portfolio”
Created: 8/11/2026, 7:56:04 AM
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