Attention Economy


Sunday, May 7, 2023

Will the US Actually Default on its Debt?

Bets Offering 2,400% Payout on US Default Lure Growing Crowd
https://www.bloomberg.com/news/articles/2023-04-28/bets-offering-2-400-payout-on-us-default-lure-growing-crowd
In what is a traditionally moribund corner of Wall Street, speculators are piling into a bet that once seemed unthinkable: that the US government will default on its debts.
With the Treasury Department inching ever closer to running out of cash — most estimates give it another few months — trading in the derivatives, known as credit-default swaps, is growing. The amount of money tied to the contracts, which will reward investors if the US misses any payments, has increased roughly eight-fold since the start of the year. 

Defaulting on the national debt is much closer than anyone realizes

MY TAKE: America’s long-term fiscal sustainability challenge
https://thehill.com/opinion/finance/3965613-americas-long-term-fiscal-sustainability-challenge/