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While Commercial RE and CMBS are certainly a huge problem for the banks, the exponentially growing sovereign debt here in the land of Good and Pllenty is the elephant in the room. Testing the hypothesis "Debt doesn't matter", how long will the trick of piling on more debt to pay old debt keep working? Not to mention of course, who besides Da Fed (directly, this is illegal) is out there to buy all this debt? You think the Chinese want any more of this trash? Belgium with backdoor funding from Da Fed?

Of course, DEFAULTING on the debt is out of the question, even just defaults by pipsqueak countries like Greece and Argentina gives banks the heebee jeebees. So how does it end? One of these days we'll find out, just hope I am still above ground when it comes. Should be something to behold.

MARKETS.BUSINESSINSIDER.COM • 2023-07-12

The debt crisis Ray Dalio warned of may already be happening as US borrowings surge by $1 trillion in just weeks

Just last month, billionaire investor Ray Dalio warned the US is at the start of a debt crisis – and that may already be coming true.

The debt crisis Ray Dalio warned of may already be happening as US borrowings surge by $1 trillion in just weeks

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FSoA Sovereign Debt Hockey Stick Blues

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