David Lynch
Appearances
Apple News Today
Why it’s time to delete yourself from the internet
And the reason for that is that the treasury market is the biggest bond market on the planet, $28 trillion. So it's big, it's liquid, it's easy to get in and get out. And so that makes it attractive to investors. When they don't know what else to do, they rush into treasuries, rush into dollars.
Apple News Today
Why it’s time to delete yourself from the internet
Stock prices fell, but bond prices fell at the same time, which is really unusual. And when the price of a bond falls, not to get too technical, the yield on it or the interest rate it carries goes up. And that was like a red warning light flashing on the dashboard of an old car. You can drive it for a little while, but when that light starts blinking, you know you got a problem.
Apple News Today
Why it’s time to delete yourself from the internet
So what consumers and businesses do at a time like this is they just freeze. And that's why economists worry that all this uncertainty multiplied by millions and millions of individual consumers all feeling uncertain can have a chilling effect.
Apple News Today
Why it’s time to delete yourself from the internet
during this tariff episode, suggested to a lot of prominent and smart people that global investors were losing confidence in the future of the dollar, the future of the treasury market, and that they were doing so because when they looked at Washington, they didn't see a steady hand at the wheel.