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The Banking System Will Have To Be Rescued | Alasdair MacLeod

Wealthion - Be Financially Resilient

CHAPTER

The US Treasury Breaks Out of a Triangle

The path of least resistance is for higher yields. Even a boring stable asset can become a toxic asset if it's over-levered and can't service the debt under a much higher interest rate regime. We'd certainly be cautious about adding to a longer term bond exposure right here just given the yield pressures. Lenders are becoming much more stingy, much more concerned about credit quality. The blue line basically shows the expected credit conditions and loan availability by the National Federation of Independent Businesses. Now this is importantly a six month lead, so this is basically the employment impact as measured by the yellow is lagged by six months.

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