Joseph Wang of FedGuy.com and Dominique Dwor-Frecaut of Macro Hive return to Forward Guidance to update listeners on the U.S. debt ceiling, which may be breached as early as June. Filmed on May 25, 2023.
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Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.
Timestamps:
(00:00) The Debt Ceiling
(10:09) What Happens When The Treasury Runs Out Of Money?
(18:20) Will The Fed Come To Rescue? (Yes, Say Dominique & Joseph)
(27:19) What Counts As A "Default"?
(32:21) MacroHive
(32:57) How Might The Market React?
(36:05) Are These "Magical Measures" Just A Temporary Fix?
(37:50) Payment Prioritization
(41:45) U.S. Treasury's Non-Marketable Debt Will Play A Key Role
(50:02) Potential For "Huge Liquidity Drain" As Treasury Plans On Issuing $1 Trillion In Bills Over The Next Six Months
(01:01:10) Dominique and Joseph's Views On The Economy
(01:08:20) Joseph's Updated Views On Banks
