from Zero Hedge
Don’t look now, but just weeks after it passed the biggest fiscal stimulus in US history, Congress passed an additional round of fiscal measures totaling $484bn. This raises Goldman’s estimated 2020 US deficit financing need to ~$3.5 trillion. But there’s more: the bank does not think the latest measure is the final word here, and its economists expect another round totaling $550bn to pay for items such as aid to state and local governments, that haven’t been fully addressed thus far.
On the whole, this would translate to between $3.8-$4 trillion in financing needs for 2020, almost a trillion dollar increment Goldman’s prior deficit estimate, and 300% more than the US sold in calendar 2019. Financing such a massive gap, amounting to 20% of GDP, will require a broad-based increase across maturities and product types.