Repeated US policymaker interventions to prevent Treasury yield spikes are part of the visible unraveling process; when repo rates spiked to 8-10% in 2019, the Fed could have allowed 9-11% Treasury yields and 10-12% mortgage rates to emerge (painful but market-clearing), but instead began balance sheet expansion, which is now much higher than pre-2019 levels.
causalpending
Speaker
Luke GromanEvidence Quote
“Repo rates spike went to 8 to 10%. They could have stood aside. We would have had 9 to 11% treasuries, 10 to 12% mortgages. That would have been an ugly environment, but no. Fed began regrowing their balance sheet.”
Source
Why is high debt different now v. prior instances of people “fear-mongering” about the debt?— Luke Gromen - FFTT, LLCCreated: 8/11/2026, 7:46:30 AM
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