JP Morgan dumps all short-term US treasuries as default approaches next week with no deal on the debt ceiling
The US Government shutdown continues and we are only five days from national bankruptcy when the debt celing is reached. Fund managers at Fidelity and JP Morgan have taken the prudent view and have dumped all their short-term US treasuries just in case of the first default in the history of the union.
Not wishing to panic markets the bank said: ‘Although JPMorgan Investment Management continues to believe that the probability of a US government default is low, it has taken certain precautionary measures with respect to the money markets.’
Selling out is certainly a way to protect against the Armageddon scenario. But then if it is bordering on the impossible to imagine why take this precaution? Does somebody at the largest US investment bank have an inside track and not like what they are hearing?
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TAP – It’s equally possible that JPM dumps their holdings to create a stampede from which they intend to profit. Markets are easy to manipulate when you control all the levers. Why not cash in on that power? Of course that’s what they’re up to, as per usual.
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