If you are a prospective homebuyer or real estate investor concerned about high interest rates and you’re sick of bad news, you may want to stop reading right now. That’s because Joao Gomes, a finance professor at the Wharton School of the University of Pennsylvania, believes America’s $34 trillion in debt could spark a crisis that sends interest rates spiraling past 7% if the government doesn’t act soon.
Gomes does not see much evidence that either party possesses the political will, or even the right formula, to manage what he sees as a real crisis on the horizon. He’s not alone in that assessment, as JPMorgan Chase & Co, CEO Jamie Dimon and Federal Reserve Chairman Jerome Powell have both recently expressed deep concern about the amount of debt America is carrying and the potential threat it poses to the economy.
Gomes Sees Immediate And Long-Term Danger To The Economy
Although many of his colleagues see America’s debt load as a…
