Here’s why the US bond market slump cannot be ignored—it’s speaking financial truth to power
As the renowned economist Rudi Dornbusch explained it, financial crises take much longer than expected to arrive, but when they do, they come on much faster than one might have anticipated. If this occurs, a loss of confidence and a sharp rise in long-term rates would make the fiscal situation unsustainable—the bond market vigilantes not seen since the 1990s would be back. ©Bloomberg
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