@enemyofthestatewearein7945
Key point here is that countries like China, Japan and South Korea historically purchased huge quantities of US bonds in order to devalue their own currency, and thus make their exports more competitive. With the tariffs, that strategy no longer works, so a fall in demand for US bonds, and a surge in yields, was an inevitable consequence of Trump's protectionism. Since Musk failed to cut spending, this effectively means that Trump's tariff policy is fiscally unsustainable. Hence why China and others don't see any need to negotiate.
@karlottobenz
DOGE cut all the relatively inexpensive stuff that promoted american soft-power abroad, therefore worsening the position of the US internationally, while leaving the most expensive stuff untouched, making no dent in the federal budget. Truly a lose-lose situation of historical proportions
@something1600
the Big Beautiful Bill sounds a lot like Liz Truss' mini budget.
@Evelyn-x7q1
This stuff is stressing me out. My 401k dropped again and I’ve got no idea if I should move anything. Bonds tanked last year and now yields are up?? Feels like whiplash.
@TonyVear-z8y
Even though the bond market is revolting while stock prices are falling, the market is still uncertain if the Fed will stick to its plan to raise interest rates until inflation is under control. What is the best way to profit from the current bear market while I'm still debating whether to sell my $401k worth of stocks? The Fed and the market both consistently underestimate how sticky inflation is.
@hassankhaild9449
that’s a lot to digest about the state of the economy right now. I’m not surprised the bond market’s reacting the way it is, though. With the U.S. debt continuing to balloon like this, it seems like the financial situation is only going to get worse.
@stephenclark9917
A Truss moment for the USA?
@silvershocknicktail6638
DOGE wasn't supposed to do a damn thing about the deficit, lol. It was designed to fire all the people who might get in the way of the oligarchy.
@tobiwan001
Yields for 20y and 30y are rising because everybody knows the US is toast by then.
@hildredscali1754
Bonds used to be one of the safest investments, even if the returns were small. They were the only thing I ever invested in. If they are going bad now, where are we supposed to turn? Are we entering a new era where risk is everywhere and the idea of safety no longer exists? It's honestly very disturbing.
@_TeXoN_
You forgot the most important point about Trumps policy: To buy bonds, you need dollars. You get dollars by selling products in the US. But Trump does not want foreigners to sell products in the US and not buy american products back. Basically the US got basically free stuff from abroad and the only thing they had to do is issues bonds.
@LilyWatsonWhite
Unfortunately, not all of us were financially literate early. I was 35 when I finally educated myself and started taking steps. I went from $176,000 in debt with zero savings or retirement to now, 2 years later, fully debt-free and over $1000,000 net worth. I know that doesn't SOUND like a lot, but I'm incredibly proud of it. Now I'm fast-tracking my wealth building (investing $400,000 annually) and don't owe a dime to anyone. It's a good feeling!..
@GastelChristopher
The bond market is different from the stock market. It is based on a cold analysis of interest rates, monetary supply and fiscal trends; where hopes and aspirations hold no sway. They pretty much tell it the way it is. No one has to believe their forecast but they will have to endure it.
@egofluff8897
As an international investor in US bond or Stock market, you are getting more and more reasons to wait and see or invest elsewhere.
@tayo5302
That was the best explanation of the bond market I have seen on YouTube. I like how TLDR doesn't assume everyone has a detailed understanding of the topics they talk about.
@brittanycarls-ly7te
While the immediate market impact of the downgrade was muted, its long-term implications for stocks are tied to rising borrowing costs, fiscal uncertainty, and shifts in investor behavior,at this point how can i utilize a $160k cap in a 5 year margin
@craigrussell7542
Investing in the debt of a country run by criminals (who are protected by their legal system) is an invitation to see your money stolen by those crooks.
@jimsackmanbusinesscoaching1344
For clarity, holding long term debt that nobody is interested in is what happened to Silicon Valley Bank. They held a lot of mortgage securities yielding 1 - 3%. When interest rates spiked, nobody wanted to buy those bonds. Then came a run on cash and most of their cash was in this very stable set of bonds. They needed to be able to sell them but could not.
@eddapultstab2078
Here's another point, government spending is going up while taxes are going down and in addition programs that stimulate the economy like social security and Medicare are also being cut. So Essentially more spending, more graft, less money and even less investment. These don't really inspire confidence to would be creditors.
@stevec5034