MAR 16, 2018
Be wary of those who point out that people have prophesized the inevitable collapse of markets for years. The federal government will throw every single tool, trick, and lie in their arsenal at it to stop this from happening. And it’s a substantial warchest.
The bond market is going to unravel. As Kotlikoff says, "the fact that the bond market hasn't crashed until now is no real evidence that it won't crash in the next 10 minutes."
Boston University economist Laurence Kotlikoff is warning that America's fiscal fuse is nearing its end unless the U.S. undertakes serious structural reforms. As part of this scary vision, the Boston University economist - in a podcast interview (24:42) we conducted today - foresees a time when bond vigilantes stage an open revolt against U.S. fiscal impropriety.
There are a number of economic problems - particularly in the area of entitlements - that are eating away at America's fiscal soundness. My biggest worry is that an economic overhaul has become too divisive politically - over the past several decades - to be meaningfully addressed.
ORIGINAL SOURCE: Kotlikoff: 'Our Country, Frankly, Is Bankrupt' - Financial Advisors' Daily Digest at Seeking Alpha on 3/15/18