Dan Wentzel ๐ณ๏ธโ๐If other democracies want to help democracy in America right now, they can start selling our treasuries.
That seems to be the only thing that gets Republicans to take action against Trump.
Larry@danwentzel
The things that pension fund managers value above others is predictability and consistency. If there is a flight from US paper it will be because Trump is unpredictable and inconsistent. Risky.
The things that pension fund managers value above others is predictability and consistency. If there is a flight from US paper it will be because Trump is unpredictable and inconsistent. Risky.
Heliograph@quoidian @danwentzel yet it seems they (#pensionFunds) are still hanging in, despite all the obvious evidence of impending doom ยฏ\_(ใ)_/ยฏ all too hard for them? switching positions wasn't in the job description?
@quoidian ... i know of another mob that waited, in roughly the same period but another century... @danwentzel
๐ถMark Nicoll 3.5%๐ด๓ ง๓ ข๓ ฅ๓ ฎ๓ ง๓ ฟ๐ฌ๐ง๐ช๐บ๐บ๐ณ@Heliograph @quoidian @danwentzel
a lot of funds are doing what they call "reducing their exposure" which seems to mean pulling out very slowly so not as to disturb the markets too much.
I believe the idea is to move fast enough to get out before the crash, but not to move so quickly you cause a crash before you can get fully out.
a lot of funds are doing what they call "reducing their exposure" which seems to mean pulling out very slowly so not as to disturb the markets too much.
I believe the idea is to move fast enough to get out before the crash, but not to move so quickly you cause a crash before you can get fully out.
Luka Rubinjoni@quoidian @duckwhistle @Heliograph @danwentzel Or before Trump mandates (by decree) that funds must retain and buy more Treasury bonds.
@rubinjoni @quoidian @Heliograph @danwentzel
That would only effect US companies, and would actually make it easier for the rest of the world to sell at a good price.
That would only effect US companies, and would actually make it easier for the rest of the world to sell at a good price.
Stryder Notavi@duckwhistle @Heliograph @quoidian @danwentzel Yep, and when they do that they try to do it quietly - so you'd expect to see a slow deflation rather than a quick, dramatic pullout.
Whilst that dramatic pullout would have the desired political effect, the resulting crash would also hurt the funds and those with their money invested with them - which probably means it won't happen.
@StryderNotavi @Heliograph @quoidian @danwentzel
there is also the issue that they are required to replace their investments.
Whilst US treasuries are not as safe as they once were, the availability of safe alternatives in the volumes required is quite limited. And that's just with private investors, if central banks tried to divest, there simple doesn't exist enough of any alternative at present.
there is also the issue that they are required to replace their investments.
Whilst US treasuries are not as safe as they once were, the availability of safe alternatives in the volumes required is quite limited. And that's just with private investors, if central banks tried to divest, there simple doesn't exist enough of any alternative at present.
@duckwhistle @Heliograph @quoidian @danwentzel An excellent point - I suspect that there's some terrified fund managers out there who are just not publically saying anything because they know they're already strapped in and there's no way off the ride now.
@StryderNotavi @duckwhistle @Heliograph @danwentzel
Not renewing T-Bills on maturity would be the way.
Not renewing T-Bills on maturity would be the way.
@StryderNotavi @duckwhistle @Heliograph @danwentzel
But there is a chance, as the OP said, that Trump might nationalize T-bills, mandating reinvestment and forbidding cashing out. I think that would be a mistake.
But there is a chance, as the OP said, that Trump might nationalize T-bills, mandating reinvestment and forbidding cashing out. I think that would be a mistake.
@quoidian @StryderNotavi @Heliograph @danwentzel
oh yes, you can't assume Trump won't do something just because it's a terrible idea!
oh yes, you can't assume Trump won't do something just because it's a terrible idea!
@duckwhistle @StryderNotavi @Heliograph @danwentzel
Unfortunately "Renegade in Power" has already been used, ( a political biography of John Diefenbaker. )
Unfortunately "Renegade in Power" has already been used, ( a political biography of John Diefenbaker. )