5 ms·
>hey could potentially start a kamikaze run on the dollar. I'm not so sure. Assuming they had several hundred billion dollars worth of Treasuries, and further
by someguydave 10y ago
>hey could potentially start a kamikaze run on the dollar.
I'm not so sure. Assuming they had several hundred billion dollars worth of Treasuries, and further assuming that they dumped them all on the market, the demand for USG debt is sufficiently large that I suspect it would be purchased in an orderly fashion without even causing much uptick in interest rates.
- richmarr 10y ago> ... I suspect it would be purchased in an orderly fashion "Orderly fashion" and trading (algorithmic or otherwise) are oil and water, surely.
- s_q_b 10y agoAssuming a rational market, sure. But market panics aren't governed by the normal rules of supply and demand. They're a behavioral phenomenon caused by the non-rational human agents in the system panicking.