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Yeah, what's up with that? Does this treasury department payment system not also cover the payments made to bondholders? Every time Congress delays raising th
by abeppu 2y ago
Yeah, what's up with that?
Does this treasury department payment system not also cover the payments made to bondholders?
Every time Congress delays raising the debt ceiling until the last minute, people get anxious and worry about a default and the full faith and credit of the US, etc. Are we now saying that the US could default even when funds are available if an un-elected guy and some junior programmers decide that would be a good idea or just mess up when dealing with a complex and arcane legacy system, and that's not scary to markets?
I would think every financial model that references a "risk-free rate" now has to be revisited while people consider whether any information visible to the Treasury Department might link their account to someone who has said something disparaging about Musk on twitter.
- csomar 2y agoYou are over-estimating the financial sector. They don't model these things. Models are rather simple (US 0% risk, this country x% risk because a handful of institutions said, etc...). There is really not much science, research or sophistication there. Take the stock market, pretty much everyone is following everyone else.
- EdwardDiego 2y agoMaybe market sentiment is an expression of faith in the US legal system? He said hopefully? Or maybe the market expects certain people to get richer shortly? He said cynically.