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How to Survive the Debt Ceiling Crisis with David Kotok

The debt ceiling debate has been reduced to a political fight between the parties. But the ramifications of the debt standoff are already being felt in the debt markets, and it is costing billions of dollars. In this episode of Global Macro Update, I talk with David Kotok, Chairman and Chief Investment Officer at Cumberland Advisors ( He and I are also active members of the Global Interdependence Center (, a politically neutral think tank that strives to influence global policies for the greater good through cooperative engagement.

In our discussion, we cover the costs of brinkmanship, the risks posed to money market funds, the geopolitical side effects, and where David sees bargains in the bond market.
Some of the other issues that David and I cover include:

- How the damage starts before we reach a debt default.

- Why the Treasury is paying more in debt service due to uncertainty in the T-bill markets.

- A lot of money has been moved from bank accounts and into money market funds. What are the risks for these funds?

- How the debt and risk of default is impacting the US and the dollar’s position on the geopolitical chessboard.

- Where to find bargains in the bond market, and several sectors where he would be overweight.

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#finance #usdebt
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John Mauldin
Each week, investors and financial professionals around the globe turn to John Mauldin to better understand Wall Street, global markets, and the drivers of the world economy. And for good reason. John is a noted financial expert, a New York Times best-selling author, a pioneering online commentator, and the publisher of one of the first publications to provide investors with free, unbiased information and guidance—Thoughts from the Frontline—one of the most widely read investment newsletters in the world.
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