📉 Former Treasury Secretary Henry Paulson Warns About US Debt Risks
Henry Paulson — the man who managed the US response during the 2008 financial crisis — is sounding the alarm on America’s growing public debt.
He recently called on US authorities to develop contingency plans for a potential breakdown in the $39 trillion US Treasury debt market. According to Paulson, this kind of crisis would look very different from 2008 because the government has far less fiscal space to act this time.
His biggest worry: Rising Treasury yields combined with the Fed being the primary buyer could create a dangerous feedback loop, significantly increasing the cost of servicing America’s debt.
While he didn’t specify when this might happen, his message was clear — better to prepare now than face an uncontrolled situation later.
This macro warning is one reason why some investors are staying cautious in 2026, as these long-term risks are still largely underpriced.
What’s your take on this? Could this become a major theme for markets this year?
⚠️ NOTE: Not financial advice
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