Jan Poser: America Needs Austerity Not Hypocrisy

Targeted spending is what we need.

Lester Lefkowitz | Stone | Getty Images The United States may also face a credit crisis

“A US sovereign default is definitely the worst outcome imaginable for financial markets” said Poser in a research note.

“A US interest rate hike would put companies and consumers under pressure and trigger a global recession. Global banks, whose financing requirements depend on the ‘risk-free’ government bonds held on their balance sheets, would immediately become insolvent,” he added.

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