Jamie Dimon warns US bond market will 'crack' under pressure from rising debt

11 points by wslh 2 days ago | 11 comments
  • mooreds 2 days ago
    It's a bit weird. He says there'll be a 'crack', which sounds pretty bad to me, but that we'll be fine.

    > The JPMorgan Chase chief executive said on Friday that he had cautioned regulators: “You are going to see a crack in the bond market.” He added: “I’m telling you this is going to happen. And you are going to panic. I’m not going to panic. We’ll be fine.”

    After scanning the transcript, I'm pretty sure he is referring to JP Morgan being fine, rather than the US economy or Americans in general.

    Here's the whole interview: https://www.youtube.com/watch?v=1NHLha3jG2g

    • oldpersonintx2 2 days ago
      but if you look at bond yields, there really isn't that much of a freakout

      something like the "Big Beautiful Bill" is going to pass, so its not like the bond market is working in a vacuum

      anecdotally, if the world didn't meltdown at the outrageous levels of ten, twenty, thirty trillion in debt...why would the world all of a sudden collapse at forty trillion in debt? if debt was a timebomb, it should have detonated decades ago

      • taylodl 2 days ago
        Ships may list for a long time before they suddenly and dramatically sink.
        • oldpersonintx2 2 days ago
          if the USD sinks, the entire world sinks

          backing off the USD is a hundred year project...you need an currency from a relatively open and law-bound Great Power that has demonstrated its staying power through conflict

          there isn't anyone else who fits the bill...yet

          • taylodl 2 days ago
            We were talking debt, not USD. The federal government does not have the power to create money, despite what people think, and so they can't print money to pay off their debts.
      • mooreds 2 days ago
        https://archive.is/VnjHo
        • idrathernot 2 days ago
          So why doesn’t he lower the interest rates? Money is fiat and the reserve requirement is 0.
          • seanmcdirmid 2 days ago
            Jamie Dimon? He isn't the fed. Also, the interest rates set by the FED only apply to banks, not the yield of US treasuries, which is set by supply and demand for those treasuries.
          • 2 days ago