US Market Crash, Crisis Could Result From Swelling US Debt: Joao Gomes
If the US doesn't adjust fiscal policy, markets could have a reaction similar to the UK's 2022 financial crisis, Wharton professor Joao Gomes said.
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If the US doesn't adjust fiscal policy, markets could have a reaction similar to the UK's 2022 financial crisis, Wharton professor Joao Gomes said.
As the US relies on deficits for growth, debt will continue to compound, making it a serious problem the coming decade, Bill Gross said.
Concerns about the deficit have fueled the Treasury-bond market meltdown of the past few weeks. These charts show why Wall Street is worried.
"Under unchanged policies, debt dynamics in the US are very unfavorable," according to the International Monetary Fund.
US federal debt has skyrocketed over recent years, triggering fears the world's biggest economy could slump into recession and have a huge impact on global stock markets.