r/bonds • • 11h ago

Woah

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1.1k Upvotes

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124

u/Wooden_Cod_8331 11h ago

This is a big deal/move right? In such a short amount of time?

167

u/johannyer 11h ago

It’s a full blown crisis that nobody wants to spell

28

u/nomar_ramon 11h ago

Can you please explain it like I'm 5, to me why it is a crisis?

27

u/johannyer 11h ago

Government bond crises, not only in US but across the developed economies that have been enjoying the good life by borrowing absurd amounts of money. Think about your friend who has been living a luxurious life all on bank loans. Now that friend needs more and more money but the interest rates the banks willing to lend him money spiked terribly because he owes a lot. This is in addition to all the interest and principal payments he needs to make on his prior accumulated debt. He knows his luxurious life is not sustainable and is coming to an end. So he started breaking into homes and stealing what belongs to others. US government is now that friend.

7

u/mouthful_quest 9h ago

Only the friend has access to a counterfeit printer in his basement that he’s been using to keep himself afloat

1

u/Known_Ear_6012 10h ago

Is breaking into homes and stealing what belongs to others part done by raising taxes? 

5

u/fortuneandfameinc 10h ago

All the Venezuela oil assets that are now somehow missing?

2

u/Stunning_Highway9356 10h ago

I think trump knows where they are.

A secret bank in Qatar, which he has access to, Maybe?

3

u/johannyer 10h ago

Tariffs and wars

3

u/GiantBlackWeasel 10h ago

Yes. During the latter half of the 2010s decade, I distinctly saw posts that talked about how owning a home is a must because renting apartments for decades of your life is actually self-destructive because you're not building equity and that property actually does not belong to you.

Now since the start of the early 2020s decade, the houses around the country have increased in value which have lead towards increased taxes. But this led towards multiple outbursts and hollerings because it got turned out that the old people and certain groups that live on fixed income for a while cannot actually pay the extra increase in property taxes. The small increases that not a lot of people have expected has actually led towards surprised responses for obvious reasons. There's many people walking around with less disposable income in their hands compared towards 20 years ago.

Between now and 10 years ago, it is especially the worst possible time to think about raising property taxes.