Catherine Rampell

Okay? So they put the cash into bonds, right? When they buy bonds, the price of bonds goes up and their interest rate goes down. Sorry for all the technical steps, but this is just to explain that usually when equities fall, you see bond rates falling too. We are not seeing that now. Okay. And... Trump clearly expected it to happen.

Okay? So they put the cash into bonds, right? When they buy bonds, the price of bonds goes up and their interest rate goes down. Sorry for all the technical steps, but this is just to explain that usually when equities fall, you see bond rates falling too. We are not seeing that now. Okay. And... Trump clearly expected it to happen.

Okay? So they put the cash into bonds, right? When they buy bonds, the price of bonds goes up and their interest rate goes down. Sorry for all the technical steps, but this is just to explain that usually when equities fall, you see bond rates falling too. We are not seeing that now. Okay. And... Trump clearly expected it to happen.

And it did happen in like very initially at the beginning of Tariffmageddon. We saw rates come down a little bit and he was like, aha, see, I'm reducing interest rates and the Fed is behind. And because, you know, Trump loves low interest rates. But then, in fact, this weird thing happened that Larry's talking about where where long term interest rates went.

And it did happen in like very initially at the beginning of Tariffmageddon. We saw rates come down a little bit and he was like, aha, see, I'm reducing interest rates and the Fed is behind. And because, you know, Trump loves low interest rates. But then, in fact, this weird thing happened that Larry's talking about where where long term interest rates went.

And it did happen in like very initially at the beginning of Tariffmageddon. We saw rates come down a little bit and he was like, aha, see, I'm reducing interest rates and the Fed is behind. And because, you know, Trump loves low interest rates. But then, in fact, this weird thing happened that Larry's talking about where where long term interest rates went.

That's not usually what you would expect. And so there's been some debate about why that might be happening. It might be that everybody's totally freaked out and they just want to hold cash. They're like, I'm not going to take my sellings from the stock market and put it into bonds. I'm just going to like hang tight and put it under my mattress or whatever. Could be that.

That's not usually what you would expect. And so there's been some debate about why that might be happening. It might be that everybody's totally freaked out and they just want to hold cash. They're like, I'm not going to take my sellings from the stock market and put it into bonds. I'm just going to like hang tight and put it under my mattress or whatever. Could be that.

That's not usually what you would expect. And so there's been some debate about why that might be happening. It might be that everybody's totally freaked out and they just want to hold cash. They're like, I'm not going to take my sellings from the stock market and put it into bonds. I'm just going to like hang tight and put it under my mattress or whatever. Could be that.

Well, it could be good advice if we didn't have high inflation, which may be what's going on here. So there are some questions about maybe it's that people are just holding on to the cash. Maybe it's that they're expecting higher inflation, which could happen as a result, sort of trend inflation could happen as a result of all of these tariffs.

Well, it could be good advice if we didn't have high inflation, which may be what's going on here. So there are some questions about maybe it's that people are just holding on to the cash. Maybe it's that they're expecting higher inflation, which could happen as a result, sort of trend inflation could happen as a result of all of these tariffs.

Well, it could be good advice if we didn't have high inflation, which may be what's going on here. So there are some questions about maybe it's that people are just holding on to the cash. Maybe it's that they're expecting higher inflation, which could happen as a result, sort of trend inflation could happen as a result of all of these tariffs.

You know the tariffs are going to raise prices at least one time, like when they initially go into place. The question is, will they feed on themselves and will continue to have higher inflation going forward? And that's quite possible. Another possibility, which is what I think...

You know the tariffs are going to raise prices at least one time, like when they initially go into place. The question is, will they feed on themselves and will continue to have higher inflation going forward? And that's quite possible. Another possibility, which is what I think...

You know the tariffs are going to raise prices at least one time, like when they initially go into place. The question is, will they feed on themselves and will continue to have higher inflation going forward? And that's quite possible. Another possibility, which is what I think...

Larry is raising, and there's some evidence for this, is that it's not that people are just like taking the cash and holding on to it. They're like, I do not want any money in the United States. So it looks like they might be investing it in like Japanese or Swiss or German bonds instead, which is not a good sign.

Larry is raising, and there's some evidence for this, is that it's not that people are just like taking the cash and holding on to it. They're like, I do not want any money in the United States. So it looks like they might be investing it in like Japanese or Swiss or German bonds instead, which is not a good sign.

Larry is raising, and there's some evidence for this, is that it's not that people are just like taking the cash and holding on to it. They're like, I do not want any money in the United States. So it looks like they might be investing it in like Japanese or Swiss or German bonds instead, which is not a good sign.

That's great. They're good guys now. Yeah, they're good guys now. So, yeah, so it could very well be that people are like, screw that the U.S. economy is too risky. I do not trust this maniac who is in charge, who is potentially screwing up not just the U.S. economy, but the global economy. I want my money back. out. I will invest it in something else. I'm not going to hold cash.

That's great. They're good guys now. Yeah, they're good guys now. So, yeah, so it could very well be that people are like, screw that the U.S. economy is too risky. I do not trust this maniac who is in charge, who is potentially screwing up not just the U.S. economy, but the global economy. I want my money back. out. I will invest it in something else. I'm not going to hold cash.