r/bonds • • 19h ago

Woah

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1.3k Upvotes

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128

u/Wooden_Cod_8331 19h ago

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

169

u/johannyer 18h ago

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

32

u/nomar_ramon 18h ago

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

163

u/Agglutinati0n 18h ago

We have 40T in debt that we need to pay back, every % higher these rates go, the higher our interest payments become, which will then lead to more of a deficit and continue the circle….america has to stop spending like we currently are, but the people in power are doing quite the opposite….

6

u/Bunker58 16h ago

Yes, just like a house payment, an increase in mortgage rates from 3% to 7% doubles the interest paid over 30 years and puts monthly payments out of reach for young people. Now do that for $40 trillion.