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.
It’s not really a “freak” event when the causes are blatantly clear and self-inflicted.
I am very annoyed that this use of ‘freak’ and further corruption of the term ‘black swan event’ have just gotten completely common place.
A black swan event is supoosed to be something completely impossible to have been predicted before hand because you didn’t have enough knowledge to even understand there was a kind of risk you were not accounting for.
An ‘unknown unknown’, to use the only useful idea Donald Rumsfeld ever came up with.
… This bond sell off is utterly predictable, unless you are completely brainwashed into a delusional level of normalcy bias and complacency.
All you have to do is realize the US is acting like an unstable dictatorship… which it very obviously is… and this is an easily predictable outcome for anyone with a decent knowledge of macroecon theory/history.
Just because we have chiselled abs and stunning features, it doesn’t mean that we too can’t not die in a freak gasoline fight accident.