- cross-posted to:
- hackernews@lemmy.bestiver.se
- cross-posted to:
- hackernews@lemmy.bestiver.se
Yields on US government bonds rose in response to the news, with the benchmark 10-year Treasury yield up 0.03 percentage points after the announcement to 4.48 per cent. The rise in yield represents a fall in price.
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Tantrump incoming.
It’s gonna be a real moody tantrum. He he
This goes to show you where the big corporate media stands … if this had happened under a Democrat President, there would be non stop news about it … a Republican Turnip does it and it’s just treated as another normal chaotic day.
Most presidents did not directly specifically threaten individuals in the press.
checks CNN
It’s the fourth item from the top on CNN. The top item relates to SCOTUS blocking Trump’s deportations.
Most presidents weren’t doing so many even more ridiculoud things that this now just seems like Thursday at Trump’s.
Moody’s didn’t even de-rate much riskier Mortgage-backed securities leading to Great Recession, but they’re derating the world standard for safe and dependable investments. Thats how much they’ve lost faith in the trump administration’s ability to continue paying on US debt.
Oh, and we all just got a nice deficit increase from this because it means we, the USA, have to pay people more to service our national debt. The party of fiscal responsibility everyone.
I’m so happy that I sunk a lot of money into other currencies a few months ago.
Last time Republicans didn’t pass a budget to fuck Obama, they had to sue to get their rating back up
The bestest for the economy they are.
Good thing Trump knows all the best lawyers
I’m somewhat of an econ moron, what does this mean specifically in a material sense?
The United States will have to pay more interest to borrow money.
Think of it like credit scores, the US is making sketchy monetary decisions, so the score went down.
It means less faith in the US government actually paying its bills. And that means current bond prices will drop, (as their projected value when they mature is now less reliable), the government will need to pay higher rates to issue worthwhile bonds, etc… Bonds are how the government borrows money, so if the government wants to take out a loan, they’ll be paying more (higher interest rates) for it.
Basically, this is going “yeah this administration is so fucked that we’re not actually 100% positive that they’ll be able to pay off the loans they take.”
The last time this happened was when republicans stalled the budget during Obama’s term. A government shutdown was looming, and republicans ran obstruction so they could claim Obama failed to pass a budget bill. And now republicans have control of all three branches.
It means the government’s borrowing costs will increase. It will increase mortgage rates, borrowing rates for individuals, for businesses, municipalities and states. It will increase the costs of everything.
This hurts everybody’s wallet.
i for one think its funny and thats my whole opinion on it
Fuck Moody’s.
It makes no sense to give the US a credit rating.
Do you mean that you don’t understand it or that you do understand it to be nonsensical? If the latter, would you mind saying a bit more about that?
Moody’s ratings are in the context of a business. The US is not a business, mainly because it prints its own money and can’t possibly go broke.
Countries have defaulted on their debt.
Republicans threaten to do so in the US about once a year now.
The money is based on faith. If people lose faith, it’s worthless and the US is in fact bankrupt. Taking on the entire world in a trade war and then passing a huge tax cut at the same time makes people think the country is unstable and they lose faith.
