Bond rout starting to sound market alarm bells

Post by robocat » Thu, Apr 10, 2025, 5:39 AM UTC

ArtTimeInvestor wrote: post #6

intermerda wrote: post #5

Earlier quoted context omitted.

> It's hard to say where the lower bound for the value of American companies is now. Is it zero? Come on, it's definitely not zero for most of the companies, even if tons of small businesses go bankrupt. > But the current administration seems to be set on redirecting those earnings away from investors towards the government. And I don't see what could limit the extent to which they do so. The objective of the current…

Companies can operate and make profit Why make a profit? How is an Apple that gives billions of dollars to investors (many of them abroad) better for Trump than an Apple that gives those billions of dollars to the Government which he controls? Tariffs are one way to redirect those profits.

  the U.S. still counts for around 40 percent of Apple’s net sales

Post by pjc50 » Thu, Apr 10, 2025, 9:35 AM UTC

roenxi wrote: post #110

pjc50 wrote: post #81

Earlier quoted context omitted.

> there isn't a reasonable path to them paying the money back Indefinite rollover is completely fine! Yes there are problems if the total interest payment gets too large, and there's scope for discussion about that, but there's no hard cutoff, it just becomes more and more uncomfortable. People saying there will be a default: deadline please. Or is this just a general assumption that mortality is inevitable for state…

It isn't completely fine and the interest payments are too large. Sure the US can afford its debts if it avoids paying fair interest and never returns the principle. The idea that is reasonable from a lender's perspective is fantasy and we live in reality. > The UK has never defaulted, for example. The UK has traditionally not been in a state of running up debts; they borrowed money for things like world wars then sp…

Post by bilbo0s » Thu, Apr 10, 2025, 11:50 AM UTC

AnimalMuppet wrote: post #100

intended wrote: post #21

There are several things at play. 1) Trump is playing a storyline. The Market place of ideas in America has one side which is under a monopoly. It sets its own prices, decides what information enters and exits, decides what the market SHOULD look like. It manages half the voting population. This is why “Trump does what he says” resonated. Previous lawmakers played the role on TV, but in back room deals, acted as if r…

> If Americans want a snowballs chance in hell, there need to be special elections around the country in 2025, to take control of congress. Perhaps, though I don't see how you're going to get them without changing or violating the Constitution. And changing the Constitution would mean acceptance by those you're trying to get rid of. Bluntly, the only way this could happen is a civil war - a real, shooting civil war,…