No. of Recommendations: 4
I don't follow Krugman, but I did read the linked article, and his concerns seem legit
to me. But they are just opinions.
The Bond Market, on the other hand, wields its opinion with some real world consequences.
"The Treasury Department’s auction of $16 billion in new 20-year bonds should have been routine. But the yield on those Treasuries (the amount investors demand for buying the bonds) rose from 4.6% to 5.05% — a signal that the market is very much not in the mood for more U.S. debt."
https://www.msn.com/en-us/money/markets/the-bond-m...The link is from MSN, so righties will probably discount it with "fake news" yada, yada,yada.
But the actual data backs up the part I snipped.
Higher interest rates means higher interest payments, for both the Government and American
Consumers. Consumers will also be getting hit with paying extra for the tariffs Trump
is implementing. These are inflationary, unless one believes the fairy tales that Trump and
MAGA spew.
Trump is playing with fire. Trump thinks he is a genius, that he knows more about
everything than everybody. But Trump's track record shows he is closer to being an
idiot than being a genius, so the odds are pretty good that there are more stupid actions
to come from Trump.
So I do think Krugman has a point about the odds of a "sudden stop" are definitely not
anywhere near zero. Nobody knows nuthin for sure, so handle your money and investments
accordingly.
