If the bond market crashes, we’re in deep shit.
Link: https://www.cnn.com/2025/05/22/investing/bond-market-selloff?cid=ios_app
beautiful”, reckless bill.
Counterpoint: Why The Crash May Not Materialize
While the risks are real, a full-blown crash isn’t guaranteed. The U.S. still retains key advantages: (a) the world’s reserve currency, (2) deep and liquid capital markets, and (3) a resilient, innovation-driven economy.
The Federal Reserve has shown it can act decisively in times of stress. The trade-tensions sparked by tariffs are already easing, and the market bounce-back reflects that.
Moreover, global alternatives remain limited - making U.S. assets, even at higher yields, relatively attractive. If inflation remains contained and growth holds up, markets could digest higher rates without unraveling. In this more benign scenario, the Moody’s downgrade becomes a wake-up call - not a trigger for collapse.
Do you honestly believe the bond market will crash?
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not so long ago. I guess there will always be something, amirite?
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From October 25, 2022 until December 13, 2024, 3-month U.S. Treasury bill yields exceeded those of 10-year U.S. Treasury notes.
Who was President?
Government spending provides a mere sugar rush to the economy AND is the major cause of inflation.
Pick your poison.
for growth? Jeez.
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