Debt and deficits may cause financial crisis, RBA research boss warns. From the A fr
Investors could decide government debt is no longer a safe asset, causing financial calamity, RBA research boss John Simon has warned.
" Persistent budget deficits may cause the next global financial crisis, as investors decide government debt is no longer a safe asset, badly damaging banks’ balance sheets, RBA research boss John Simon has warned in his final remarks.
Dr Simon said the biggest medium-term risk to global financial stability was what he termed the “bank-sovereign nexus”, where investors abandoned the widely held assumption that government debt was safe, causing a financial market meltdown."
https://www.copyright link/policy/economy/debt-and-deficits-may-cause-financial-crisis-rba-research-boss-warns-20240801-p5jygg
What a strange thing to say.....what is it that makes him think this?
Anyway, hard to find good news for markets this weekend but went to a nice Bday lunch today but not my Bday.
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