Faith in Treasurys is far stronger than it ever was in Lehman Bros. This suggests a far bigger shock than Lehman if this truth is proven false.
This comparison doesn’t do much for anyone except, well, Pimco. If Kashkari wants to write something interesting and helpful, tell us what exactly the day after a downgrade would look like for a trillion dollar fixed income firm like his. This seems to me like a scare tactic with the ratings agencies as the intended target - how dare you throw us all into another 2008!
Could a U.S. debt downgrade trigger a financial crisis? - The Washington Post
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