I had the chance to move a bunch of money from oil stocks to bonds last year, should I be sad or glad I didn't? Clearly oil is down like everything else but...
The government taxes people to pay for services it provides. If it can't pay for them, you have a "deficit" and must borrow the rest of the money by selling bonds. When Yields go up, it means people are not buying bonds and selling the ones they have and losing faith in...
You are fucked but that has not as much to do with your investments and more to do with the US Currency is about to crash. The main reason the USD had such a high value for decades is because US Treasury bonds were seen as a safe stable investment.
Me, to my mother: Maybe uhhhh ask if you need that item right now or if it can wait, you know?
Mom: We are! :)
Since I jumped in on the 5th, cleaned our house of demons (told libertarian dad to put some respect on it) on the 7th, mom has uhhh kinda realized I was not joking around.
Exactly, when borrowing costs rise, it’s a clear signal that investor confidence is slipping. If people start doubting the reliability of T-Bonds, it can ripple through the entire economy. Definitely something to keep an eye on.
Assholes like you are the reason people give up on understanding the world around them and decline to be involved. You want all conversations to be led and dominated by experts, while the rest of us sit in silent admiration of your academic credentials. You're a pompous jerk.
On the one hand im like, this could be bad, really bad. On the other hand, I live in Germany and if the petrodollar collapses then my mortgage in the US is going to be a looooooot cheaper for my to maintain.
US standard of living is going to collapse though.
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https://www.tutor2u.net/economics/topics/j-curve-effect#:~:text=The%20J%2Dcurve%20effect%20refers%20to%20the%20phenomenon,devalues%20its%20currency%20or%20otherwise%20reduces%20its
Uhh I mean NUMBERS SCARY
Mom: We are! :)
Since I jumped in on the 5th, cleaned our house of demons (told libertarian dad to put some respect on it) on the 7th, mom has uhhh kinda realized I was not joking around.
US standard of living is going to collapse though.