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Treasury Secretary Lew Warns Of Terrible Debt Ceiling Accident (If Debt Limit Not Raised)

This is a syndicated repost published with the permission of Confounded Interest - Online Course Notes For Financial Markets. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

Treasury Secretary Jack Lew repeated his warning that a “catastrophic debt default” may become a reality if the US Congress fails to take action on the country’s debt ceiling.

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Accident? No, this is just “the boy who cried wolf” rhetoric.

Of course Congress will pass an increase after a few deals are ironed out.

Still, the Treasury bill that matures in November 2015 jumped in yield.

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Leading the yield curve to have an inverse hump at the short end.

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It is still amazing that the interest rate paid on bank excess reserves is higher than the short end of the yield curve.

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Here is Treasury Secretary Jacob Lew (right) talking to investors (left).

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