Investors are dumping U.S. government bonds, raising fears that confidence in America is fading.

The upheaval in stocks has been grabbing all the headlines, but there is a bigger problem looming in another corner of the financial markets that rarely gets headlines: Investors are dumping U.S. government bonds.

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.

  • Avid Amoeba@lemmy.ca
    46·
    2 days ago

    Yeah, the first time around was like, shit… Okay maybe they’ll recover. Biden comes along, okay maybe it really was a fluke. Then the current nightmare ensues… Fuck, it wasn’t a fluke. Okay then time to decouple from the damage.

    Most Canadians I talk to give significant likelihood that the US won’t recover from this. Even if it recovers from the fascism. At least not in a long time. We see that the system of checks and balances is more of a theatre that only appeared to be working, likely because capital wasn’t hungry enough. Right now the US looks like a functional dictatorship with no obvious path to recovery. Even if the Democrats take the house.

    • WanderingThoughts@europe.pub
      13·
      2 days ago

      We see that the system of checks and balances is more of a theatre that only appeared to be working

      Seems it was rather based on a gentlemen’s agreement, which is fine as long as gentlemen get in power, or at least someone believing in the rules of the game. As soon as someone gets behind the controls who clearly dislikes the rules, that’s a huge issue.