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.
I mean they voted for a criminal. So yeah.
Shoots market in the dick
“Don’t worry folks, all part of the plan”
Puts bandages on market
“There, good as new”
I know that my quality of life is likely to tank in the coming years, and if it doesn’t it is because I got lucky where others didn’t, but damn is it hilarious seeing how fucking stupid centrist business bros and tech people are in the U.S. right now, they are JUST NOW realizing the boat is sinking, when only half of the boat is still above the water… it is fucking hilarious honestly and I don’t take joy in this happening, I mean I do, but I am not happy it is happening I am rather so sad that if I don’t laugh about it all I will do is cry.
Fading? Shit’s gone, dog.
They mean the rich fucks. Not me and you.
Y’all need to actually read the article instead of just using it to prove what you already believe. The world is more complicated than a headline
I sold 98% of mine.
now I’m diversified across Europe and Asia.
not great, but what choice do I have?
Google searches for stable foreign bonds skyrockets
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.
raises fear that confidence in America is fading
Just now that fear is being raised?
Why would anyone still have faith in this country?
That’s how shit the rest of them are.
European markets and bonds seem to be catching a lot of the fleeing capital so… big doubt.
We were up 3-0 in the finals and blew the lead. Enjoy generations of poverty if your family can survive the great depression.
Flour sack dresses are so in
It’s more like we came out of WW2 up by 10 because the other teams got decimated. As the decades have gone on they’ve rebuilt their teams and scored some goals so while we kept scoring, they were catching up. This is actually the natural process where a rebuilt Europe was expected to eventually equal the US.
But Trump just blew up the scoreboard and now everyone is wondering if we’re even still playing the same game.
The US was just the latest to take advantage of a disaster. Not too long before the Nazis tried to kill all the Jews were americans trying to kill all the native americans, as well. I’m not sure america has done any good as a country in a long while.
I didn’t say they did?
People from the U.S. (and even parts of Europe) do not understand how corrupt, stupid, and unstable majority of the world is. It is genuinely unfathomable.
This does not excuse the fascism of the current admin, nor the war-crimes of the U.S. as a whole, but they are nowhere even remotely close to the likes of Moldova.
Yup. US dollar is not the reserve currency because it’s attractive. It is the reserve currency because there simply is no alternative. There simply is no asset that can hold hundreds of trillions of dollar.
I looked into escaping years ago. My immeasurable disappointment when I realized I actually had it pretty good in the US.
You know everyone’s favorite talking point about Healthcare? I did the math, at least for my occupation, and if I were to move to Europe and get the exact same job and free Healthcare, I’d be making a fraction of what I do now.
I’m not making excuses, the US absolutely could do better but jfc how is everything else so bad?
if I were to move to Europe and get the exact same job and free Healthcare, I’d be making a fraction of what I do now.
facepalm dawg you can’t just compare how much you make in the two places, how do you quantify the stress that comes from never knowing if medical problem is going to end your life… because it will bankrupt you and your family not because it will kill you directly?
I make that much, dawg. I’m privileged. Did you not understand my comment?
No I just didn’t realize how naive you were about your privilege.
If you are a millionaire already why stay here?
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)
His whole cabinet is full of Israeli loyalists and you are all still out here talking about Russia. Dude open your eyes.
Wynaut both?
killed by Russia
And don’t forget tech-bros like Elon Musk.
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
Nah, dude, there’s a 0% chance that we return to normal after this. We don’t have the political will to build high speed rail over twenty years, there’s no way we’re going to spend the forty years required to unfuck all the damage Trump’s done in three months. America is already cooked, stock a fork in it. It’s time start looking for the next thing and planning to do better next time. Get involved in local government.
When US policy can change in hours, based on the whims of a madman, it’s not exactly difficult to see why people lose faith in that stability. Investors want long term stability, and right now things are complete chaos.
As a guy who thought about buying bonds recently and decided to go to gold instead, my thinking was that Trump and/or Elon could definitely make some attempt to steal/divert treasury bonds, hold bonds hostage for some change he wants, or some other fuckery. The US can’t go bankrupt - so long as you can trust the leaders to do the most basic rational things. But you can’t trust them to do that right now.
If the US loses it’s Reserve Currency status because too many international investors are existing it, more printing will directly translate to Inflation.
So whilst technically the US can’t go bankrupt, it most certainly can end up with Hyperinflation and all its problems if the printers start going full steam (metaphorically speaking, since nowadays most currency is digital) to stop the bankrupting of the US following Trump/Musk fuckery and foreigners (as well as larger local investors) refuse to buy those new Dollars and actually accelerate their the exiting from positions in USD (and that’s not just going to be cash positions but also USD-Denominated assets such as Stocks, Bonds and Treasuries) which seems to have been started happening already judging by news such as this.
Oil being priced in dollars is a primary driver of why other countries need to buy dollars. I’m worried we’re about to find out what happens when OPEC decides to start allowing oil to be traded in euros or yuan.
I’ve stopped assuming these guys will account for facts, nor that they keep the “no” finance guys around when making decisions.
I think 100% of decisions are made by Trump in the Oval Office based on the object permanence of the last person or tweet he’s seen.
I can heartily say as an American I have no faith whatsoever in this country and wish all the best in the world to the Canada-Europe-Japan conglomerate to be the only possible beacon of hope on the planet.
They (trump, republican toadies billionaires ,etc) have no faith whatsoever in this country either. that’s why they’re grabbing everything they can, selling the country for parts and fucking off to Greenland.
Nothing will meaningfully improve until the rich fear for their lives
Desperation is unlikely to produce meaningful improvements
Yes which is why warfare is a struggle where you make your enemy so completely devoid of any desperation that they cannot fight anymore.
We got powerful armed unions after the Ludlow massacre/10 day war, and workers rights/min wage/40hr work week after triangle factory fire and the ensuing riots.
Blacks got the right to vote after the death of MLK and the ensuing riots and organized violence of the Black Panthers.
It’s sad how suppressed our educations are in this police state of a country.
That’s the only thing that ever has
Why not?
