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The Sovereign Debt Spiral | James Lavish

Forward Guidance

NOTE

The Inverted Yield Curve and the Credit Cycle

The marketing of certain securities at par can be misleading for professionals./nInterest rate fluctuations can impact banks' net interest margins./nRegional banks may be more affected by economic downturns than large money center banks./nCredit cycles and recessions can lead to changes in the financial system./nThe US government's large deficit and debt spiral pose challenges for the economy./nBorrowing at higher rates creates larger interest rate payments and more debt./nThe continuous need to borrow creates a cycle of debt payment and borrowing./nCongress plays a role in government spending and debt management.

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