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> if investors start to worry the US might default on its debts If investors are willing to lend to the US for 30 years at 2%, doesn't seem like they see much
by panarky 7y ago
> if investors start to worry the US might default on its debts
If investors are willing to lend to the US for 30 years at 2%, doesn't seem like they see much risk of default.
- outside1234 7y agoWe were lending at 5% to people with no income right before the 2008 financial crisis too.
- runeks 7y agoIf the alternative is getting 0% yield on USD, why wouldn’t they trade the USD for a bond? And before you say “just buy EUR/gold/stocks” that just means someone else (the seller of EUR/stocks/gold) would now be in the above situation. Buying US Treasuries for USD has little to do with absolute risk of the bond, and everything to do with the non-existence difference in risk between the bond (US Treasury) and the currency (USD) it’s denominated in.