Financial Contagion Spreads from Britain to U.S. and Switzerland
Despite the backtracking by the British government, yields on the gilt remain high, compared to pre-crisis levels (cf. above). Meanwhile, the crisis hitting them has expanded to U.S. corporate and government bonds. Indeed, to answer the margin calls, UK funds have sold those bonds, so much so that Biden’s Treasury Secretary Janet Yellen warned of a dangerous liquidity crisis on […]
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