Paulson Urges Plan to Prevent Treasury Collapse

Former Treasury Secretary Henry Paulson warned that the $31 trillion U.S. Treasury market could collapse without an emergency backup plan.
He told Bloomberg’s Wall Street Week that a breakdown would force the Fed to be buyer, pushing prices down and yields up.
Paulson suggested fixing the fiscal deficit via higher revenues, tax reforms, and overhauling Social Security and health‑care programs.
He noted the U.S. budget deficit has averaged 6% of GDP for three years and is expected to stay near that level.