Investors are selling off bonds from the U.S. government, as part of a trade known as “Sell America.”

The United States government has had to pay more to borrow in the global debt markets. On Wednesday, the Treasury department found that there was tepid demand for an auction for $20 billion worth of bonds, and ended up paying a slightly higher interest rate (or yield) than expected.

This has spooked markets. Yields on 30-year U.S. Treasuries have spiked above 5% this week — an unusual, and unsettling, surge in the price that the U.S. government pays on its long-term debt. An increase in bond yields is particularly damaging to the economy because it jacks up the interest rates on many things that consumers pay, such as on mortgages and other loans.

  • DarkDecay@lemmy.worldEnglish
    124·
    4 days ago

    Well trump did say he’d run the country like one of his businesses. Bankrupt, devoid of legitimate investors and full of corruption. It all checks out folks, still can’t believe people where dumb enough to vote for this

    • skuzz@discuss.tchncs.de
      52·
      4 days ago

      Did some research a while back.

      Mango Mussolini failed businesses:

      • At least four failed building ventures
      • Had a failed “university”
      • Failed vodka business (how hard is that, right?)
      • Failed steak business
      • Failed airline
      • Failed board game
      • Failed casinos in Atlantic City (how do you fail at running multiple businesses that only exist to hoover up money?)
      • Failed magazine
      • Failed luxury travel organization
      • Failed mortgage company
      • Failed presidency that took Pres. Biden’s administration most of their entire term to fix. We’re talking documents that are gone, departments that are deleted, abject chaos that had to be rebuilt from scratch in some cases.

      Successes:

      • Had mommy’s money to get him going
      • Had 5 successful buildings built, mostly in the 1980s
        • At least three of them had fraudulent financial statements, inflated valuations, and inflated tax losses
      • Lemminary@lemmy.world
        13·
        4 days ago

        Isn’t failing a business on purpose for profit a shitty but viable strategy? I’ve seen at least one YouTuber who explains how this stuff works but it escapes me every time so I’m wondering if anybody has insight on this.

        • skuzz@discuss.tchncs.de
          3·
          2 days ago

          There are definitely beneficial tax/benefit implications to failing businesses in certain situations. (Similar to how if you suck at stocks, you get perks.) Not out of the realm of possibilities. Given that his early life had successes, it could very well be that he learned failure is more profitable. Given the silver spoon in his mouth, less possible he learned, rather than existed and bumbled into it. Either way, not someone to put a lot of stock in. When you’re bootstrapped with a certain amount of money, as long as your accountants keep you from being an abject fool, you’ll never be poor a day in your life. Like, if most Americans had somewhere around $5 million invested conservatively, (don’t trust this number, random deep memory grab that may be in error, and based on current money in the last decade) they could live on the dividends (money generated) while never touching the nest egg, and live a normal comfortable life without working for the rest of their lives.

          Failing a business is only profitable because of abuse of laws. Laws can be changed, and should be. Success should always be the goal.

          There’s legitimately an entire genre of CEO that exists in the USA just to go into a company and purposely destroy it, and collect a golden parachute exit payout, for example. Shouldn’t ever exist.

          Is it funny or sad that I know all this, yet I work my ass off to survive?