So You Don’t Want US Debt. What Are Your Options?
Exactly nobody who cared to weigh in on Wednesday believed Fitch's decision to pull the trigger on a US debt downgrade was likely to have severe ramifications for markets.
There are no alternatives to US Treasurys. There are other ostensible safe-havens, but not withstanding recent liquidity concerns and putting aside the worst US rates volatility since the financial crisis, the Treasury market remains the deepest and most liquid in the world. That's one boilerplate talking point that happens t
There will always have to be a top dog. I hope it will always be us.
Let’s be honest, nobody cares about the ratings agency’s opinions because they proved to be a purchasable commodity during the GFC. They have no credibility, this is all just a charade.
Will Trump and Biden please step aside so we, as a country, can begin to take steps that will improve the institutional and social capital of the USA?
Trump will obviously never step aside willingly, and Biden isn’t the issue. No matter who Democrats put up, Republicans will treat them the same and tear it all down before recognizing their legitimacy. Democrats still operate under the old order of politics. They are still political and not averse to lining their own pockets, but they aren’t attacking the legitimacy of our democracy or intentionally undermining institutions for political gain.
Agreed, but I wonder if this downgrade will start investors talking about the direction of Federal debt and implications for rates. Treasury issuance is huge (almost $2TR this summer, I think), deficit and debt are up and to the right, tax revenue slumping (Federal, state, and local). The plug in the equation is yields. The 10 year has breached 4%, is 10bp from the 2022 highs.