There is an even bigger catastrophe waiting to happen with all the off the books debt of the Federal Mortgage Associations. They are Government Agencies and their debt is not included in our National Debt. It is guaranteed by the US Government.
They loaned this money out in 30 year low interest mortgages, but borrowed the money short term. These short term bonds are now having to be refinanced at much higher rates.
What kind of idiot agency would lend long term at low rates and finance short term? They all did it. Freddie Mac, Ginnie May, Fannie May,.....
Don’t fret, WWIII will wipe out most debt and a lot of humanity…
A reset, if you will.