What 8% Inflation Will Do To Your Bonds And Your Bank Stocks

Economist Charles Calomiris sets out a scary but plausible scenario for how the budget deficit will translate into grief for savers.

Worried about your deposits? Or the bank shares in your portfolio? You should be. Trouble lies ahead.

So says Charles Calomiris, economist and professor at the new University of Austin. “It’s going to get worse. People shouldn’t assume that large banks are not going to be affected,” he says.