Normally, investors rush into Treasurys at a whiff of economic chaos but now they are selling them as not even the lure of higher interest payments on the bonds is getting them to buy. The freak development has experts worried that big banks, funds and traders are losing faith in America as a good place to store their money.
“The fear is the U.S. is losing its standing as the safe haven,” said George Cipolloni, a fund manager at Penn Mutual Asset Management. “Our bond market is the biggest and most stable in the world, but when you add instability, bad things can happen.”
That could be bad news for consumers in need of a loan — and for President Donald Trump, who had hoped his tariff pause earlier this week would restore confidence in the markets.
God investors are dumb as shit
Investors are the problem?
I for one like stability when my money is involved, and most people do. Most arent looking for the roulette wheel experience. When you have an idiot wielding tremendous power to throw out trade agreements and to inadvertently or intentionally tank certain businesses and industries because they’re significantly affected by tariffs, and from one day to the next they’re added, removed, added again, increased, now decreased… that’s not a place you want your money. And the government’s where those businesses reside aren’t stable either as their future taxes and revenue streams are hard to predict, so their bonds are dicey.
So what do you think investors should do? So what are you doing? Just crossing your fingers and rolling the dice? Got any major purchases coming up? Hoping to retire soon? If you lost your job how secure you feeling about getting another right now? Maybe invest in $TRUMP… I’m sure that will carry you.
Yeah the idea that NOW is when they fear confidence in America is fading means they’re fucking morons. It should have been obvious after the first round of tariff bailouts in trumps first admin.
Nothing will meaningfully improve until the rich fear for their lives
Desperation is unlikely to produce meaningful improvements
I guess I picked a bad time to stop huffing glue.
Johnny what can you make of this?
Can you fly this economy and land it?
Have you ever been to an El Salvadorian prison, Joey?
Joey, do you like it when JD Vance rubs up and down on your leg?
You ever seen a grown man naked?
Surely you can’t be serious.
This is arguably bigger news than the stock market.
It definitely is. If bonds don’t sell, or at least no longer sell cheap, then the US might get bigger problems with their budget.
republicunts plans to finance rich people tax cuts with additional debt in shambles
If US Bonds are no longer the de facto safe haven asset…
The USD is no longer the world’s de facto reserve currency.
That means that even if all the tariffs were rescinded, Trump croaked and somehow JD Vance took a ‘be at least somewhat more competent and less stupid’ pill, and never reinstated them…
Well it would mean the dollar would crash against other currencies, we wouldn’t be able to import anywhere near as much, and US international debt payments as a percentage of the yearly budget would climb fast.
… And then that could spiral into both massive austerity at home, and/or ‘lol we are defaulting on our international debt’ either by formal declaration, or… basically hyperinflation.
Bond sales are only politically connected to the budget; not financially. Not selling bonds would in no way hinder congress from passing a budget.
Not really. US debt is held in those bonds, and it is a perpetual game of selling and repaying them. If they don’t sell anymore, the old ones have still to be repaid - or default. You don’t want to experience this.
The “debt” of a monetarily sovereign state is really nothing like the debt of a household or business. The US could pay off all its debt in an instant by an act of Congress. Not saying that would be a good thing, but there are no financial constraints stopping Congress from doing that; only political ones.
USD denominated bonds are by definition 100% exposed to the USD and it has been falling consistently (with but a single dead cat bounce) against other major currencies since Trump took over.
International investors are probably avoiding the Dollar (and hence Dollar-denominated assets) in favor of other currencies.
This would also explain why Gold keeps on beating records almost daily: it’s sort of a “traditional” currency hence benefits from outflows from major currencies.
If this turns into the end of the Reserve Currency status for the USD, expect massive problems in the US with Inflation and servicing the massive US National Debt (if Treasury auctions have lower demand, Treasure yields have to go up in order to sell them, which is equivalent to say that interest rates on US Government loans go up).
Which makes sense to all of us who see Trump as a Russian asset who’s goal is not to cripple America but to destroy it. This is the end game and why Americans need to really ramp up their protests. This is the literal death of America we are witnessing as killed by Russia (and probably China too)
And remember he doesn’t have to be an official asset, merely being someone useful to them effectively does the same thing - with deniability for the Russians
There’s a reason for that. Maybe if all those well-off bankers hadn’t thrown in with trump in hopes of deregulation their portfolios would still be slowly climbing up with the DJIA under a democrat instead of flopping around like a fish out of water under trump.
Shoots market in the dick
“Don’t worry folks, all part of the plan”
Puts bandages on market
“There, good as new”
