/biz/ - Business & Finance

>>49601059
Your cute little stock market and babby crypto "market" are just playthings in comparison

>>49601059
Agreed.

>>49601059
This chart will touch 0 at some point, maybe years from now, but when it does it, then we know that the financial system as we know it is over. This is my highest conviction prediction.

>>49601059
Explain, please

>>49601160
It's finally coming.

China bailed the world out in 2008 by loading up on USTs. They aren't coming to the rescue this time. They couldn't, even if they wanted to.

>>49601059
WHAT DO WE SHORT?!?

>>49601488
Everything until the FED begins with debt monetization

>>49601488
zoomers (ticker: HOUSING)

what the fuck is a bond?

>>49601059
ahh fudge

whew

not good

>TREASURY 3-YEAR YIELD ADVANCE EXTENDS TO 30 BASIS POINTS ON DAY

>>49601059
Yes i understand that it hasnt even begun.
Im waiting

>>49601830
I think they are boring things that boomers buy so they can lose money to inflation. I think you buy a bond which gives you interest for a certain number of years till you get your money back. I don't think bonds can even beat real estate or inflation. They're worthless trash for 50 IQ boomers

>>49601937
I can tell you are 200 IQ

Don't worry though, Powell will just turn the printers back on right?

>>49601937
You know there are TIPS, right?

>>49601159
>then we know t
Japan's curve is touching zero since 1999
Europes since 2016

>>49601905
yields and prices are inverted. the prices of these bonds are going down relative to the IOU rate. why factors would make existing bonds in the market dump?

Huh.

What happens next?

>>49601093
lol fuck canada

>>49602699
checked
hawkish fed bumps rates by more than expected. everyone is bailing out of long-dated bonds with low rates for fresh short term t-bills printer at a higher juicier IOU and shorter term

>>49602856
based

>>49601937
You are a retard. The largest bondholders are world governments, central banks, and investment banks.

i'm trying to figure out bonds

>>49601937

so bonds are for when you want to hold dollars, but you want to get interest on that? holding dollars with interest being slightly more profitable then holding dollars with no interest. like stablecoins defi but less risk and less reward?

if they're selling bonds what are they buying instead? are they selling? if they are must be selling it to buy something or they would just hold the bonds instead of dollars? or are they buying bonds right now? to get out of the markets?

>>49603008
To my understanding, a bond is a loan. So if i burrow 100 000 usd from a ban, and i have a 1% interest, the bank can sell that as a bond, worth 100 000usd + interest. Whoever buys the bond can cash in on the interest periodically.
Government bonds, is government debt. So you essentially lend money to the government, and they pay the interest, either by printing more money, or by giving you money they got from taxes or w/e.

If yield/interest of bonds go up, that means the government has an increased debt, to my understanding. USA has an insane debt they have never paid back, and has always been increasing. it's kinda scary, but i guess it will take a while before it plays out.

>>49603188
from a bank*

>>49603008
you don't even get to hold dollars. You give the government a large sum of money to get interest from them for a bunch of years. The interest ends up more than the money you gave them. But is still outpaced by inflation so it's stupid, dumb and old.

>>49602977
the governments, central banks and investment banks are screwing things up. They go bankrupt because bonds are worthless

>>49603273
>The interest ends up more than the money you gave them
so its better then just holding cash, but it's not volatile like playing in the markets. so for people who don't care if they lose money to inflation, they'd rather do that then risk losing even more in the markets, or getting nothing from just dollars. they can park their money in bonds (loaning money to the government) and collect interest. are there tax benefits? since it's interest payments on a loan maybe you don't have to pay taxes on it or something.

i'm trying to figure out why bonds are bought at all i'm not just going to assume its because "stupid boomers" they must have a reason

>>49603804
Because it's 100% safe profits. If you want to beat inflation you run risks. If you have 10 000 000 usd, 2% a year is 200 000 usd. If you made 10 000 000 you could literally just all-in on bonds and chill for the rest of life. Unless you get fucked super hard by inflation. But then you can compound your money, by using the 2% to buy more bonds.

>>49603898
for when you don't care about getting more upside, not if it means even the slightest risk of losing what you have. so you accept the loss from inflation, and live off the interest payments on loaning out your dollar. ok that makes sense. if i had a billion dollars am i really hungry for another billion or am i content to live off the interest on that billion in total comfort for the rest of my life even with inflation. ok yeah i guess i can see it. you could even just park 9 billion in bonds and play with your 1 billion on the markets if you wanted and still get decent upside potential while only risking a percent of your stash. like imagine having 10 billion and putting it all in dollars and just losing or putting it all in stocks and maybe losing half in a bad month. no you'd probably do a mix of mostly bonds. ok i get it now i think, thanks.

>>49604066
Ye, i think i heard the standard is like 40% bonds 60% stocks or something

>>49604209
i've already learned more about finances in this thread then 4 years of high school

>>49604066
cocacola stock goes up and gives you at least 2.7% a year. You can also cash out at any time

>>49604335
Because politics isn't about improving infrastructure like education systems, it's about who's most corrupt. At least that's what it seems like in america

>>49601059
heh

>>49601937

brainlet

they already know the housing play and blackrock is strong arming that sector

>>49604336
i could put a million into stocks like that and live comfortably off the dividends. or take my million to crypto and lose half or double it in months. i think if i had 2 million i'd put half in dividend stock and the other half on growth stocks and crypto to try and beat inflation in the long term. if i had 10 million i might even include some bonds to diversify and insulate me somewhat against my stocks crashing. anything held in dollars would be purely for buying the dips on speculative assets.

>>49604335
Welcome to /biz/, listen to what everyone says here

>>49602604
They don't have the world reserve currency status. Did you really think this wouldn't be an important factor in my thinking? I am European by the way so thanks for telling me about European bonds.

>>49604336
except its not that easy. you'll rock the market cap of that certain company with your billions. and then nobody stops the management from just taking money from your "stocks" and spending it on bad investments or bigger bonuses.

technically it doesnt and shouldnt happend, but it kind of does. its one of the reasons that we are in this mess rn. the fed gave everyone who asked a bunch of money and the management did everything they could to inflate their equity via the stocks that they owned, and not only that but give themselves nice pay raises.

its why that kiosiaki guy says that you dont get your money back on stocks. if i were a big whale i would be very wary of holding stock like that, unless i got the voting rights share that buffet and the like can purchase.

i mean think of all the ipo this past year that were essentially scams that just rugged it on clueless investors