Jamie Dimon, CEO of JPMorgan Chase, has once again sounded the alarm that the US Bond market is in danger of cracking if the United States does not regain control of its public finances.
It’s a shock warning that could give rise to serious concerns among investors, but also to criticism. What are we to make of it, and what would be the consequences if Jamie Dimon’s scenario of a fall in US Bonds materialises?
Jamie Dimon’s warning: “It’s going to happen, and you’re going to panic”
At the Reagan National Economic Forum in California last Friday, Jamie Dimon issued a stern warning:
“You are going to see a crack in the Bond market, OK? It is going to happen”, reported Reuters.
The reason for the warning? The US budget deficit and total amount of debt, which has exploded in recent years to more than 36,000 billion dollars.
Without substantial changes, the US is headed for a reckoning, Dimon said.
“And I tell this to my…
