#610: The Basis Trade That Could Crash Everything with James Lavish
TFTC: A Bitcoin Podcast
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Trade Tariffs and Treasury Turmoil
This chapter explores the ramifications of China's potential responses to U.S. trade tariffs, particularly concerning U.S. treasury bonds and the dollar's stability. It draws historical parallels with the 1998 collapse of Long-Term Capital Management to illustrate the risks of excessive leverage and systemic vulnerabilities in today's market. The discussion also highlights the warnings from institutions like the Brookings Institution regarding the precarious nature of the bond market and suggests controversial solutions to address these emerging threats.
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