You know who’s going to pay for the consequences of the bond market calling bullshit on our unmanagable sovereign debt in an inflationary environment right?
It’s not AI companies/Big Tech, it’s not the big banks, it’s not private credit, and it’s not the politicians.
It’s people like you and me, trying to carve out a slice of peace & happiness in this life for our families with the little bit of resources we worked hard for.
> It’s people like you and me, trying to carve out a slice of peace & happiness in this life for our families with the little bit of resources we worked hard for.
Two thirds of Americans either voted for this, or didn't care enough to vote at all. It sucks for the third that actually voted against Trump and are now suffering the consequences of the actions of others, but they are a minority.
Side note: one thing that I keep coming back to is “these people vote against their own best interest” and I think it’s worse than that. These voters do so intentionally to inflict pain on others. Their own interests are secondary.
Some voted that way because they're racists and they just want to hurt other people. Some voted that way because they're absolutely stupid short bus type people. Some voted that way because dumb people generally suck at hypothetical thinking, and usually lack second and higher order thinking skills, and metacognition/introspection.
> These voters do so intentionally to inflict pain on others. Their own interests are secondary.
I'll never forget that quote of that one exasperated Trump voter during his first term, where she said, "He's not hurting the people he's supposed to hurt."
One could argue that they are voting in their own interests and that they derive the most utility by inflicting pain on those they consider to be their enemies, even if it hurts them too.
Its just basic thinking. Other countries have paralimintary democracy where elites pick the people so you usually dont get the biggest idiots in charge.
Its pretty simple that if you reran the 2016 or the 2024 elections within a couple of months of them they would have overwheming gone the other way.
But people only learn from touching the hot stove.
Some don't even learn that way. The first Trump administration was a disaster (and the second is even worse). The handling of COVID and the illegal actions with Ukraine should have been a complete deal breaker at a minimum, yet here we are
I’m over this argument. We’re less than 50 days to the midterms. It’s a new hand we’re being dealt. The last one didn’t go so well, so let’s focus on the one that is coming up.
Thing is, we don't know the extent of the damage that has been done to the US' load bearing walls. So even if we get a new hand, the hand is likely going to be putrid unless Dems give us the circus of trials and arrests for every one of these morons.
Dems have to be ruthless when it comes to rooting out the corruption of Trumps regime. Sadly, I'm not optimistic about them taking the gloves off the way Magyar has in Hungary after Orban was finally deposed.
And then the other 7 billion odd people who don't get to vote in US elections, but now get to suffer through the consequences as their fuel prices skyrocket.
Republicans say the same thing the shoe is on the other foot. USA has a lot of bugetary problems where the government is struggling to pay for interest.
Trump decided to use Tariffs to pay. But what will democrats do to pay for the budget shortfalls? Increase taxes? you could say they will increase taxes on the "1%" but they will not. The middle class always pays somehow.
Honestly I'm not even sure this is true. Both parties are to blame for this bullshit. American spending is totally out of control and the bond market is right to raise the interest rates. No one has governed under even close to a balanced budget since Clinton.
The centrist Democrats (Joe and Obama) are obviously much, much better than straight up fascism which is the current Republican party. Neither approach digs us out of the hole the bond market is responding to though, we need totally different leadership.
Yes, exactly. Thank you. Fucking Jesus Christ I'm taking these hits for trying to expose the corpo democrats for what they are: basically neo cons from the 90s. They suck. Vote progressive.
I also vote progressive. The both sides argument is really just helping republicans. Makes less politically informed people think they are the same and just sit out or vote republican over culture war stuff. There is a clear difference and it matters that people know that.
I don't get how this is such an unpopular take. Yes, Donald Trump is destroying America as we know it. No, the Democrats didn't do that. Yes, both the Democrats and Republicans are responsible for our insane military and entitlement budget. All three takes are true. Vote for people who read the fucking federal ledger and are interested in balancing it, if there are any.
My answer would be tax the rich, drastically cut our imperialist military, and remove the cap on social security tax.
We can't borrow forever and not face consequences. Fuck all of you who disagree with this. Thanks for coming to my TED talk.
>It’s people like you and me, trying to carve out a slice of peace & happiness in this life for our families with the little bit of resources we worked hard for.
And we're strapped right now after 40 years of financial abuse. Get ready for The Great Depression 2.0. He sure made us great again, we just didn't realize he meant great depression when he said great.
> It’s not AI companies/Big Tech, it’s not the big banks,
Out of curiousity, if 10 year treasuries keep rising, wouldn't that put a major damper on the recent capital raising spree that AI and big tech companies are on? Why would someone invest in their relatively low interest bonds when you could invest in a 10 year treasury and get a much higher "guaranteed" return? They'd have to raise the rates on their bond issuances to stay competitive, which puts a long term squeeze on them.
I’m sure the only ones investing in any sort of long term bonds are sovereigns and fund managers that have no skin in the game of their fund. Buffet isn’t sitting on 300 or 400 billion of 3 month tbills for no reason. Short duration gives liquidity and optionality to redeploy into other assets when they become more attractive and limits the risk of inflation. Every dip in the equity market gets bought amazingly fast because the writing is on the wall for long term debt since Silicon Valley Bank went nuclear.
>It’s people like you and me, trying to carve out a slice of peace & happiness in this life for our families with the little bit of resources we worked hard for.
That is too much for the rich and powerful. You need to have nothing and love the ruling class unconditionally. Like in 1984, you will have nothing and love big brother. These "resources" will distract you , therefore those resources must be eliminated.
Just like Mao said, people who are starving are unable to have thoughts of revolting. People who are full, have thoughts of great unrest. That is why he made them starve
America coming out of WW2, exercised amazing power towards the middle class and one that was never seen in history. Not even 100 years later it is starting to unravel as we move back towards corporate ownership
That's not a Mao quote. Mao's policies caused a lot of starvation but his political philosophy relied on the poor and starving to act as revolutionaries.
Almost every significant popular uprising I can think of can at least trace part of it's origin to food insecurity.
Mao’s assumption is actually incorrect. There is strong correlation between food shortages and social unrest. The French revolution, the 1848 Spring of Nations across Europe, even the Arab Spring were partially ignited because of hunger.
I keep rates low so I can borrow money with bonds at a lower interest rate to pay back… if those bond holders feel as though you are keeping rates lower than the amount of risk the buyers are facing by holding your debt; they start to sell the bonds.
Once bonds start selling, the market starts to question their safety. A buyer will not hold a bond they see as a risk unless there is a higher yield% to compensate. A higher bond yield means the person who borrowed the money by creating the bonds will have to pay a higher interest on the repayment of that money.
The bond market is the last bastion of democracy in America because Americans wanted to have their country ran like a business; this is how the business works when you piss off the people holding your debt.
I understand what you’re saying but I think for the less technical audience some more clarity is needed on what’s going on.
A higher bond yield for bonds in the market (rights to a debt) comes from those bonds being sold at a discount *now* on what the net present value of what they are technically entitled to be paid at maturity means the “market rate” yield today on bonds in the market aggregate goes up. Pay less now to hold an existing bond to get the higher yield at the end of the period.
This means that new issue bonds have to compete with these higher market yields, which in turn leads to no one buying new debt unless it’s at market parity with the higher yields on bonds of similar risk.
Just a small nuance there, I think, that’s important to clarify. Bonds issued 5 years ago don’t have their yield adjust overnight variably; it’s the trading of what’s owed of those debts by people that hold that old bond that adjusts the yield percentage.
You’re absolutely correct and thanks for adding, I didn’t know how to get the nitty gritty of it in there without using technical jargon but you did a great job!
Imagine a treasury bond as an IOU $100 reimbursed in 1 year (no coupon, you just get $100). If you buy this note at $99 it'd give you yield of 1% on your money, at $98 you'd get 2%, etc. The calculation is bit more complex for 10 year instead of 1 year but it's the same idea. And a lot more things can happen in 10 years, in particular regarding to inflation (you'd not want 1% if inflation was 2% obviously, so you'd buy at $98 at best in the example above). The bond market is not consciously "punishing", it's just that buyers are bidding at a lower price, so that they get a yield that'll cover their future inflation estimates.
That’s because a bank looks at a bond as a safe and straightforward way to achieve x% return. The bond rate is referred to as a “risk-free rate”
Yes, the bond is backed by the US government and it isn’t completely “risk-free” but it’s more risk-free than you or I are as mortgage borrowers.
Using a home mortgage as the example: banks look at the 10-year treasury as the corresponding “risk-free” rate on a similar timeline to a 30-year mortgage (because people rarely pay the full 30 years. Sell, refi, etc.). The “risk premium” is what the bank interprets the borrower’s level of risk over the US government, essentially. They’re not going to lend to me at a 5.05% rate if they can get a return guaranteed from the government from 5.0%. That doesn’t make up for my risk of losing my job and being unable to pay them back. But 6.25% might…
We (the FI I work for) look at the 10 year for calculating the best mortgage rates we can. Being as that ~10 years is average life of a mortgage loan. This goes the same for auto loans being based off the 3 year because that roughly the average life of those loans. I underwrite loan applications and very rarely see mortgage loans go out to maturity.
He was cynical to a fault. Voting still matters or we wouldn't see the government trying to to limit it by closing polling places and limiting mail in voting
I’m surprised I got such a rational comment in response.
I love Carlin as much as the next person - but the way Reddit adores him as if he were a generational political figure instead of a great comedian is both frustrating and extremely concerning to me.
Well the person I’m responding to said, “Beyond the grave, the man is right on all fronts”
That sort of sounds like an all-or-nothing statement.
Also, regarding Carlin,time I said, he’s a great comedian. The problem is when people prop him up (almost always here on Reddit) as if he was some political figure. He wasn’t, he just made a lot of political jokes. His political beliefs were problematic, particular with respect to voting and participating in out democracy,
Everyone is using this as an opportunity to dunk on the US, and deservedly so, but yields are rising across developed markets, not just the US. Fiscal mismanagement and inflationary pressures aren’t a US phenomenon—we’re just the idiots who are doing it while growth was already solid
Yup - UK, Japan, France, etc - most of the West will suffer a lot more if the bond market collapses. The world economy will suffer as a whole, but it will be more painful for some than others.
Between this and AI being poised to replace most white collar jobs soon, it’s seriously over at this point. I’m saving and investing everything I can to prepare for this shitstorm.
Bessent was a Soros guy. He should know what happens when you try to play chicken with the market. But he was on the other side of this equation the first time, maybe that lesson didn't actually sink in.
I like the poker reference. Especially since Bessent's "I am the house now." quote. Kinda brings the whole gambling motif together. A weird thing to say who's most famous move is breaking the house. The market even called his bluff almost immediately. And his "asymmetrical information" statement. It's almost like he's playing a weird combination of poker and blackjack, where if he bluffs hard enough somehow his bust won't count.
Methodical_Science | a day ago
You know who’s going to pay for the consequences of the bond market calling bullshit on our unmanagable sovereign debt in an inflationary environment right?
It’s not AI companies/Big Tech, it’s not the big banks, it’s not private credit, and it’s not the politicians.
It’s people like you and me, trying to carve out a slice of peace & happiness in this life for our families with the little bit of resources we worked hard for.
irrealewunsche | 20 hours ago
> It’s people like you and me, trying to carve out a slice of peace & happiness in this life for our families with the little bit of resources we worked hard for.
Two thirds of Americans either voted for this, or didn't care enough to vote at all. It sucks for the third that actually voted against Trump and are now suffering the consequences of the actions of others, but they are a minority.
amccune | 20 hours ago
Side note: one thing that I keep coming back to is “these people vote against their own best interest” and I think it’s worse than that. These voters do so intentionally to inflict pain on others. Their own interests are secondary.
dogs_gt_cats | 19 hours ago
Some voted that way because they're racists and they just want to hurt other people. Some voted that way because they're absolutely stupid short bus type people. Some voted that way because dumb people generally suck at hypothetical thinking, and usually lack second and higher order thinking skills, and metacognition/introspection.
events_occur | 13 hours ago
> These voters do so intentionally to inflict pain on others. Their own interests are secondary.
I'll never forget that quote of that one exasperated Trump voter during his first term, where she said, "He's not hurting the people he's supposed to hurt."
Ketchup571 | 9 hours ago
One could argue that they are voting in their own interests and that they derive the most utility by inflicting pain on those they consider to be their enemies, even if it hurts them too.
Quantic | 19 hours ago
Is this the obligatory if only you weren’t stupid then you’d vote how you should, argument? No wonder American politics is fucked
HumorAccomplished611 | 17 hours ago
Its just basic thinking. Other countries have paralimintary democracy where elites pick the people so you usually dont get the biggest idiots in charge.
Its pretty simple that if you reran the 2016 or the 2024 elections within a couple of months of them they would have overwheming gone the other way.
But people only learn from touching the hot stove.
RegressToTheMean | 16 hours ago
Some don't even learn that way. The first Trump administration was a disaster (and the second is even worse). The handling of COVID and the illegal actions with Ukraine should have been a complete deal breaker at a minimum, yet here we are
HumorAccomplished611 | 14 hours ago
Jan 6th was one of the biggest. He even said in the debate in 2020 (would you peacefully pass on power? We wont. Stand by.)
When insurrection isnt punished its just practice.
noodlenerd | 18 hours ago
I’m over this argument. We’re less than 50 days to the midterms. It’s a new hand we’re being dealt. The last one didn’t go so well, so let’s focus on the one that is coming up.
SwindlingAccountant | 17 hours ago
Thing is, we don't know the extent of the damage that has been done to the US' load bearing walls. So even if we get a new hand, the hand is likely going to be putrid unless Dems give us the circus of trials and arrests for every one of these morons.
nik-nak333 | 17 hours ago
Dems have to be ruthless when it comes to rooting out the corruption of Trumps regime. Sadly, I'm not optimistic about them taking the gloves off the way Magyar has in Hungary after Orban was finally deposed.
findingmike | 18 hours ago
I like your attitude :)
Icy-Lobster-203 | 18 hours ago
And then the other 7 billion odd people who don't get to vote in US elections, but now get to suffer through the consequences as their fuel prices skyrocket.
linerva | 8 hours ago
And as America continues to do their best to destroy the planet.
ThereGoesTheSquash | 18 hours ago
I am ready to pay extra in taxes or whatever to rid this country of MAGA. I have had it with these idiots.
northman46 | 18 hours ago
They love “free stuff” and hate taxes so the politicians of both parties give them what they want.
Nobody gets elected to cut services and raise taxes
PressWearsARedDress | 16 hours ago
Republicans say the same thing the shoe is on the other foot. USA has a lot of bugetary problems where the government is struggling to pay for interest.
Trump decided to use Tariffs to pay. But what will democrats do to pay for the budget shortfalls? Increase taxes? you could say they will increase taxes on the "1%" but they will not. The middle class always pays somehow.
Professional_Nerve11 | 18 hours ago
Honestly I'm not even sure this is true. Both parties are to blame for this bullshit. American spending is totally out of control and the bond market is right to raise the interest rates. No one has governed under even close to a balanced budget since Clinton.
Least-Blackberry-848 | 18 hours ago
False equivalence is a logical fallacy. It’s one side, and it’s not even close.
ShylockTheGnome | 18 hours ago
“Both sides” is such a bad argument. One is clearly worse.
Professional_Nerve11 | 18 hours ago
True, but bad and exceptionally bad is still valid
Professional_Nerve11 | 18 hours ago
The centrist Democrats (Joe and Obama) are obviously much, much better than straight up fascism which is the current Republican party. Neither approach digs us out of the hole the bond market is responding to though, we need totally different leadership.
Ralphanese | 17 hours ago
If there’s a Nazi at the table and ten other people sitting there talking to him, you got a table with eleven Nazis.
Professional_Nerve11 | 16 hours ago
Yes, exactly. Thank you. Fucking Jesus Christ I'm taking these hits for trying to expose the corpo democrats for what they are: basically neo cons from the 90s. They suck. Vote progressive.
ShylockTheGnome | 15 hours ago
I also vote progressive. The both sides argument is really just helping republicans. Makes less politically informed people think they are the same and just sit out or vote republican over culture war stuff. There is a clear difference and it matters that people know that.
BroughtBagLunchSmart | 17 hours ago
Agreed, when my cat scratches me it is the same as when a mountain lion bites through the back of my skull instantly killing me. I am very smart.
Professional_Nerve11 | 16 hours ago
Agreed and funny take.
Professional_Nerve11 | 16 hours ago
I don't get how this is such an unpopular take. Yes, Donald Trump is destroying America as we know it. No, the Democrats didn't do that. Yes, both the Democrats and Republicans are responsible for our insane military and entitlement budget. All three takes are true. Vote for people who read the fucking federal ledger and are interested in balancing it, if there are any.
My answer would be tax the rich, drastically cut our imperialist military, and remove the cap on social security tax.
We can't borrow forever and not face consequences. Fuck all of you who disagree with this. Thanks for coming to my TED talk.
Leody | 19 hours ago
>It’s people like you and me, trying to carve out a slice of peace & happiness in this life for our families with the little bit of resources we worked hard for.
And we're strapped right now after 40 years of financial abuse. Get ready for The Great Depression 2.0. He sure made us great again, we just didn't realize he meant great depression when he said great.
dogs_gt_cats | 19 hours ago
> It’s not AI companies/Big Tech, it’s not the big banks,
Out of curiousity, if 10 year treasuries keep rising, wouldn't that put a major damper on the recent capital raising spree that AI and big tech companies are on? Why would someone invest in their relatively low interest bonds when you could invest in a 10 year treasury and get a much higher "guaranteed" return? They'd have to raise the rates on their bond issuances to stay competitive, which puts a long term squeeze on them.
RobertLeRoyParker | 18 hours ago
I’m sure the only ones investing in any sort of long term bonds are sovereigns and fund managers that have no skin in the game of their fund. Buffet isn’t sitting on 300 or 400 billion of 3 month tbills for no reason. Short duration gives liquidity and optionality to redeploy into other assets when they become more attractive and limits the risk of inflation. Every dip in the equity market gets bought amazingly fast because the writing is on the wall for long term debt since Silicon Valley Bank went nuclear.
ElectroMagnetsYo | 10 hours ago
What he means is those companies will get bailouts with taxpayer dollars just like last time
PrinnyFriend | a day ago
>It’s people like you and me, trying to carve out a slice of peace & happiness in this life for our families with the little bit of resources we worked hard for.
That is too much for the rich and powerful. You need to have nothing and love the ruling class unconditionally. Like in 1984, you will have nothing and love big brother. These "resources" will distract you , therefore those resources must be eliminated.
Just like Mao said, people who are starving are unable to have thoughts of revolting. People who are full, have thoughts of great unrest. That is why he made them starve
America coming out of WW2, exercised amazing power towards the middle class and one that was never seen in history. Not even 100 years later it is starting to unravel as we move back towards corporate ownership
Ffigy | 21 hours ago
Vladimir Lenin may have said something like that, but Mao spoke more of the opposite. "The poorer people are, the more revolutionary they are."
Tom-_-Foolery | 20 hours ago
That's not a Mao quote. Mao's policies caused a lot of starvation but his political philosophy relied on the poor and starving to act as revolutionaries.
Almost every significant popular uprising I can think of can at least trace part of it's origin to food insecurity.
Acceptable-Yamm | 21 hours ago
I’d love to know where that Mao quote is from. I can’t find it.
gyrhod | 21 hours ago
Where did mao say that?
TheRealJackUmbrella | 19 hours ago
Mao’s assumption is actually incorrect. There is strong correlation between food shortages and social unrest. The French revolution, the 1848 Spring of Nations across Europe, even the Arab Spring were partially ignited because of hunger.
Xeynon | 20 hours ago
That's why we have to take charge of our own destiny and hold the people responsible accountable.
mistressbitcoin | 14 hours ago
Inflation doesnt take your resources... it just makes them worth nominally more.
sworl5 | a day ago
Thank God for the bond market.
If you have an incompetent Fed that cuts rates when inflation is too high then the bond market can come in to punish them.
pseudonominom | 23 hours ago
Punish us.
It’s us.
MichalWs | a day ago
How does it work?
snasna102 | a day ago
I keep rates low so I can borrow money with bonds at a lower interest rate to pay back… if those bond holders feel as though you are keeping rates lower than the amount of risk the buyers are facing by holding your debt; they start to sell the bonds.
Once bonds start selling, the market starts to question their safety. A buyer will not hold a bond they see as a risk unless there is a higher yield% to compensate. A higher bond yield means the person who borrowed the money by creating the bonds will have to pay a higher interest on the repayment of that money.
The bond market is the last bastion of democracy in America because Americans wanted to have their country ran like a business; this is how the business works when you piss off the people holding your debt.
bigbabyb | 20 hours ago
I understand what you’re saying but I think for the less technical audience some more clarity is needed on what’s going on.
A higher bond yield for bonds in the market (rights to a debt) comes from those bonds being sold at a discount *now* on what the net present value of what they are technically entitled to be paid at maturity means the “market rate” yield today on bonds in the market aggregate goes up. Pay less now to hold an existing bond to get the higher yield at the end of the period.
This means that new issue bonds have to compete with these higher market yields, which in turn leads to no one buying new debt unless it’s at market parity with the higher yields on bonds of similar risk.
Just a small nuance there, I think, that’s important to clarify. Bonds issued 5 years ago don’t have their yield adjust overnight variably; it’s the trading of what’s owed of those debts by people that hold that old bond that adjusts the yield percentage.
snasna102 | 20 hours ago
You’re absolutely correct and thanks for adding, I didn’t know how to get the nitty gritty of it in there without using technical jargon but you did a great job!
flatfisher | 20 hours ago
Imagine a treasury bond as an IOU $100 reimbursed in 1 year (no coupon, you just get $100). If you buy this note at $99 it'd give you yield of 1% on your money, at $98 you'd get 2%, etc. The calculation is bit more complex for 10 year instead of 1 year but it's the same idea. And a lot more things can happen in 10 years, in particular regarding to inflation (you'd not want 1% if inflation was 2% obviously, so you'd buy at $98 at best in the example above). The bond market is not consciously "punishing", it's just that buyers are bidding at a lower price, so that they get a yield that'll cover their future inflation estimates.
MichalWs | 19 hours ago
I understand how bonds work. I miss the connection between interest rates and bond price.
iamCosmoKramerAMA | 19 hours ago
That’s because a bank looks at a bond as a safe and straightforward way to achieve x% return. The bond rate is referred to as a “risk-free rate”
Yes, the bond is backed by the US government and it isn’t completely “risk-free” but it’s more risk-free than you or I are as mortgage borrowers.
Using a home mortgage as the example: banks look at the 10-year treasury as the corresponding “risk-free” rate on a similar timeline to a 30-year mortgage (because people rarely pay the full 30 years. Sell, refi, etc.). The “risk premium” is what the bank interprets the borrower’s level of risk over the US government, essentially. They’re not going to lend to me at a 5.05% rate if they can get a return guaranteed from the government from 5.0%. That doesn’t make up for my risk of losing my job and being unable to pay them back. But 6.25% might…
dirty15 | 18 hours ago
We (the FI I work for) look at the 10 year for calculating the best mortgage rates we can. Being as that ~10 years is average life of a mortgage loan. This goes the same for auto loans being based off the 3 year because that roughly the average life of those loans. I underwrite loan applications and very rarely see mortgage loans go out to maturity.
WaffleTacoFrappucino | 17 hours ago
You mean the same Fed that printed astronomical amounts of money?
wwarlock1337 | 20 hours ago
Think of the average dumb American. Remember that half of them are dumber than that.
-George Carlin
Beyond the grave, the man is still right on all fronts.
PeeFarts | 20 hours ago
And when he argues that voting is meaningless because the system is rigged and that’s why he advocates not participating in the voting system?
JimJimmyJamesJimbo | 20 hours ago
He was cynical to a fault. Voting still matters or we wouldn't see the government trying to to limit it by closing polling places and limiting mail in voting
PeeFarts | 20 hours ago
I’m surprised I got such a rational comment in response.
I love Carlin as much as the next person - but the way Reddit adores him as if he were a generational political figure instead of a great comedian is both frustrating and extremely concerning to me.
Consistent-Arm2206 | 13 hours ago
he was wrong here. but no one's correct 100% of the time, and you dont have to take what someone says in an all-or-nothing sort of way
PeeFarts | 12 hours ago
Well the person I’m responding to said, “Beyond the grave, the man is right on all fronts”
That sort of sounds like an all-or-nothing statement.
Also, regarding Carlin,time I said, he’s a great comedian. The problem is when people prop him up (almost always here on Reddit) as if he was some political figure. He wasn’t, he just made a lot of political jokes. His political beliefs were problematic, particular with respect to voting and participating in out democracy,
colloquialshitposter | 19 hours ago
Everyone is using this as an opportunity to dunk on the US, and deservedly so, but yields are rising across developed markets, not just the US. Fiscal mismanagement and inflationary pressures aren’t a US phenomenon—we’re just the idiots who are doing it while growth was already solid
Havinfun2nite | 18 hours ago
Yup - UK, Japan, France, etc - most of the West will suffer a lot more if the bond market collapses. The world economy will suffer as a whole, but it will be more painful for some than others.
getmeoutoftax | 21 hours ago
Between this and AI being poised to replace most white collar jobs soon, it’s seriously over at this point. I’m saving and investing everything I can to prepare for this shitstorm.
User299651 | 21 hours ago
Same here.
BlackCatHamSlice | 18 hours ago
What are we investing in?
PMMEYourTatasGirl | 18 hours ago
Beanie babies
BlackCatHamSlice | 18 hours ago
Legumes and heritage seeds
Mjolnir2000 | 11 hours ago
With tulip bulbs as a hedge.
getmeoutoftax | 17 hours ago
I just stick to index funds.
aNewHope_v_ThaEmpire | 14 hours ago
And when the companies that make up those funds collapse along with the rest of the market?
getmeoutoftax | 12 hours ago
That’s true, but I don’t see any other alternative. S&P is weighted and tech heavy, so I’m sure they’ll do well regardless.
weatherwar | 7 hours ago
Nothing is collapsing lmao.
If those companies "collapse" then maybe we should all be investing in gardening lessons and ammo.
ICLazeru | 19 hours ago
Bessent was a Soros guy. He should know what happens when you try to play chicken with the market. But he was on the other side of this equation the first time, maybe that lesson didn't actually sink in.
weatherwar | 7 hours ago
Isn't that the craziest thing.
Bassent knows exactly how the bond market works in this situation and is still going all in holding a 7-2 offsuit.
ICLazeru | 6 hours ago
I like the poker reference. Especially since Bessent's "I am the house now." quote. Kinda brings the whole gambling motif together. A weird thing to say who's most famous move is breaking the house. The market even called his bluff almost immediately. And his "asymmetrical information" statement. It's almost like he's playing a weird combination of poker and blackjack, where if he bluffs hard enough somehow his bust won't count.