President of the Global Markets Institute at Goldman Sachs Abby Joseph Cohen spoke with CNBC this morning.
- 0:55 It is highly unlikely that the U.S. government “politely defaults.” As a democracy, the U.S. government is more likely to deal with this problem with inflation. The Treasury gets it, but state and local governments may not.
- 1:55 Interest rates aren’t going to change anytime soon. Corporate bonds offer some opportunities. It will take some time for inflation or interest rates to increase.
- 3:10 A double dip is extremely unlikely, they don’t happen very often, and the last time it happened Paul Volcker made it happen.
- 4:08 Jobs is the most important issue, and not just the short term. labour market problems have been growing for a decade. The president has to address both the cyclical and structural employment issues.
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