The next recession will be different from historical recessions because when weakness arrives, investors will no longer assume 'the old movie' (economy weak → rates fall); instead, they will worry about the government's ability to finance its massive deficit through new bond issuance at current yields, potentially leading to failed Treasury auctions and forced debt restructuring.
causalpending
Evidence Quote
“I think now the next stage is when the recession comes they'll say we're going to we we can't Finance this stuff so there was a moment in the UK three years ago where they they had to sell some bonds and there was some sort of policy that was being uh considered that investors bulked at”
Created: 8/10/2026, 10:50:41 PM
My Notes
Loading notes...