For a good A few hours on April 9, the disaster signaled. The price of the elections has been declining for weeks. Then, the US Treasury bond market – normally among the safest assets available – also laid down. The yield on ten -year treasure bills jumped at 4.5% (see Chart 1), compared to 3.9% earlier. This meant that the prices of obligations, which evolve inversely towards the yields, had cropped. The failure of the assets that are both risky and supposedly safe has immediately threatened to destabilize the financial system itself.
The America’s financial system approached the edge
