Goldman Sounds Red Alert Over The Debt Ceiling: "Upcoming Deadline Looks As Risky As The 2011 Debt Limit Fight" | WHAT REALLY HAPPENED

Goldman Sounds Red Alert Over The Debt Ceiling: "Upcoming Deadline Looks As Risky As The 2011 Debt Limit Fight"

On Friday, with some segments of the bond market starting to grow increasingly nervous about the outcome of the debt ceiling debate - whose "drop dead date" is expected to fall some time between late October and early November - we laid out the two two scenarios how this particular upcoming drama could proceed in the weeks and months ahead.

But first a reminder what repo expert Scott Skyrm said, noting that "for the past several years, Congress always reached a compromise before the possibility of a "technical default" creeped into the markets. This year, as we get closer to the "drop dead date" (which hasn't yet been determined) the markets will start pricing in distortions."

And indeed they are doing just that, with the kink in the Bill curve representing the D-Day starting to gradually shift forward, from early November as of last week...

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