Why a $345 Billion Asset Manager Thinks the US is Financially Failing (Spoiler: It Is)

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So, Jim Millstein, the co-chair of Guggenheim Securities—because who wouldn’t want to be a co-chair of something that sounds like a fancy board game?—is waving his arms like a frantic conductor, urging the United States government to tidy up its financial mess. Apparently, we’re on the brink of a “fiscal disaster.” You know, just your average Tuesday in America.

In a delightful tête-à-tête with Bloomberg, Millstein pointed out that our government spending is outpacing revenues faster than a toddler at a candy store. It’s like watching a hamster on a wheel—lots of movement, but absolutely no progress.

“We’re running a 7% of GDP deficit this year,” he says, “which means that debt is increasing by 7% a year, whereas the economy has only been growing at 2% to 3% a year.” So, in layman’s terms, we’re basically becoming the world’s most indebted sloth. Who knew that being slow and steady wouldn’t win the race?

In another riveting Bloomberg interview—because who doesn’t want to hear about fiscal policy over their morning coffee?—Millstein expressed that investors are getting a bit jittery about the US’s financial situation. Long-term Treasury yields are rising, and it’s not because they’re trying to impress anyone. It’s more like they’re screaming, “Help! We’re drowning in debt!”

He elaborated that the ten-year Treasury yields are climbing “because of the imbalance in the federal government’s finances and the huge amount of deficits they have to finance.” It’s like trying to balance a seesaw with a sumo wrestler on one side and a feather on the other. Good luck with that!

Millstein warns that these rising yields are the US’s biggest financial headache right now, increasing the interest costs of existing and future debt. It’s like getting a credit card bill that’s somehow larger than your mortgage. How does that even happen?

He also mentioned that we might be heading toward a déjà vu moment reminiscent of the 1990s when bond yields rose enough to finally get politicians off their couches to do something about the deficit. Fingers crossed they don’t just order takeout instead.

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2025-05-28 12:21