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OT: American Politics

Sorry but…
Can someone explain to me what exactly the bond market is… what it’s meant for and why, what’s happening to it, it so bad?
 
Sorry but…
Can someone explain to me what exactly the bond market is… what it’s meant for and why, what’s happening to it, it so bad?

A market to buy and sell all kinds of treasury bills/bonds issued by governments, utilities, corporations, etc. Allows investors (including pension funds, insurance cos) to hold assets to achieve desired levels of liquidity and cash flow from bond payments. A bond issued by X can be traded after it’s issued by any number investors.

Anyway, the bond market is typically viewed as more sober than the speculative stock markets and is perhaps a more concrete signal that some bad shit is going down. For instance, if some bond prices are getting pushed down and buyers are seeking a higher return (interest rate) it’s because they expect inflation to increase. That’s not a great sign. (And there are other key measures, such as the yield curve that points to risk of recession.)

Krugman points out something kinda scarier in his article … that some bond holders are now in a “dash for cash” - that they want out altogether. They are seeking safe harbour by increasing their cash holdings. Not a good sign.
 
Bonds are how governments raise money i.e. debt.

Currently it looks like everyone is selling their US bonds, which have always been the safest of havens during a financial crisis.

This means that a) the world is losing confidence in the US economy and b) the cost of financing its debt is skyrocketing for the US.
 
Bonds are how governments raise money i.e. debt.

Currently it looks like everyone is selling their US bonds, which have always been the safest of havens during a financial crisis.

This means that a) the world is losing confidence in the US economy and b) the cost of financing its debt is skyrocketing for the US.

And that last statement is how they plan on financing the tax cuts to billionaires.

This is as much a sell off to gain cash positions but also to screw over Trumps agenda.
 
Speaking of…


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Those are pretty insane comments, honestly. I… don’t think that will help.
Such a tone deaf dummy. Hard not to let this tarnish his legacy. Shoulda just kept his mouth shut.
 
imagine getting paid for this "analysis"


With financial markets in free fall, President Donald Trump is likely close to backtracking on some of his tariffs, said Marko Kolanovic, the former chief global strategist at JPMorgan Chase & Co.
“I think the 4,800 level is the level where they’ll really cave in,” Kolanovic told MarketWatch Tuesday evening, just hours before Trump’s “reciprocal” tariffs were set to take effect — including a 104% rate on imports from China.

“They do want to avoid a recession and we are close to the point of no return on that,” he added.
 
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