I read something last week that was doing analysis of the whole hedge fund/interest rate swaps setups.
She’s gonna blow!
All it would take is like a 1/2 percent increase in the prime, and four out of five of the largest banks in the world would immediately go insolvent.
If America lived in a stand alone world, they might be able to keep it going.
But with the Chinese, the Japanese, some of the EU holding so much US debt, they’re not gonna stand for measly couple-percent interest rates much longer.
America has a lot of deep strengths, but we also have some terribly exposed jugular veins. Our welfare and EBT depenedent urban areas are among the worst. Any disruption in the financial system, one that the suburbs might “ride out” Argentina-style, would cause our cities to blow sky-high, and then “all bets are off.”