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re: Hidden in the tariff news is the fact that the 10 year yield has dropped below 4%

Posted on 4/4/25 at 8:29 am to
Posted by GeauxBurrow312
Member since Nov 2024
6269 posts
Posted on 4/4/25 at 8:29 am to
I wouldnt classify wall street as "not working" - those baws put in long hours. My friends who went the IB route have put in crazy hours over the years
Posted by GumboPot
Member since Mar 2009
140573 posts
Posted on 4/4/25 at 8:31 am to
quote:

But, this won't just hurt rich guys with their 401(k)s. Pension funds are going to be screaming from rooftops if they don't get their assumed 7% returns -- and they may eventually need PBGC protection and bailouts.


Because pension funds have over extended their portfolio in CLOs from private equity.

Posted by GeauxBurrow312
Member since Nov 2024
6269 posts
Posted on 4/4/25 at 8:34 am to
quote:

Now I'm considering going long in equities while everyone is selling


I would wait a few weeks before doing that. I dont think we are at our bottom yet, especially since the figs in Europe and Canada have already said they are going to escalate the trade war. Markets will bottom out after they announce higher tariffs on the US
Posted by LSUnation78
Northshore
Member since Aug 2012
14230 posts
Posted on 4/4/25 at 8:35 am to
It hasnt really been hidden. Some individuals have just been too focused on sp500 or nasdaq to understand whats really going on.


This is actually brilliant economics that might just save us from a very real economic collapse.
Posted by Padme
Member since Dec 2020
9800 posts
Posted on 4/4/25 at 8:38 am to
Since Trump declared this an economic emergency, the other day, I believe that gives him the ability to fire Powell if Powell becomes defiant, which, let’s be honest, he was since Trumps first term.

If it came to that, the libs and senate gop cucks might meld into their satanic overlords.
This post was edited on 4/4/25 at 8:41 am
Posted by Powerman
Member since Jan 2004
173789 posts
Posted on 4/4/25 at 8:41 am to
5 trillion in wealth was wiped out in 2 days. Now that's just paper wealth that has the chance to recover.

But saving 500 billion over a decade seems pretty trivial compared to the amount of global economic damage that is being caused

This just seems like shifting of the goal posts on what the strategy and desired outcome is.
Posted by GeauxBurrow312
Member since Nov 2024
6269 posts
Posted on 4/4/25 at 8:52 am to
$50b a year savings is $150 per capita, thats not trivial for a one off cut. Same cost savings as getting rid of USAID
Posted by TerraForma
Moscow, ID
Member since Mar 2025
166 posts
Posted on 4/4/25 at 9:01 am to
quote:

But saving 500 billion over a decade seems pretty trivial compared to the amount of global economic damage that is being caused

It is already a 1.2% drop (and still dropping) from what Trump/Bessent inherited, not the 0.5% in the OP. That is $1.2 Trillion saved over a decade in worthless interest payments and I would speculate we'll see at least <3.5% on the 10 year. That is 1.5%, or $1.5 Trillion saved.
Posted by Powerman
Member since Jan 2004
173789 posts
Posted on 4/4/25 at 9:03 am to
quote:

It is already a 1.2% drop (and still dropping) from what Trump/Bessent inherited, not the 0.5% in the OP. That is $1.2 Trillion saved over a decade in worthless interest payments and I would speculate we'll see at least <3.5% on the 10 year. That is 1.5%, or $1.5 Trillion saved.

Thanks for clarifying.

Now we're talking about some real numbers

Posted by ithad2bme
Houston transplant from B.R.
Member since Sep 2008
3687 posts
Posted on 4/4/25 at 9:25 am to
quote:

TerraForma

Interesting user name, are you an alter or actually new to the site?
Posted by GumboPot
Member since Mar 2009
140573 posts
Posted on 4/4/25 at 9:29 am to
quote:

I would wait a few weeks before doing that. I dont think we are at our bottom yet, especially since the figs in Europe and Canada have already said they are going to escalate the trade war. Markets will bottom out after they announce higher tariffs on the US
Posted by GumboPot
Member since Mar 2009
140573 posts
Posted on 4/4/25 at 9:35 am to
quote:

5 trillion in wealth was wiped out in 2 days. Now that's just paper wealth that has the chance to recover.

But saving 500 billion over a decade seems pretty trivial compared to the amount of global economic damage that is being caused

This just seems like shifting of the goal posts on what the strategy and desired outcome is.


While stocks get the headlines when they drop, the full picture of 401(k) performance includes bond gains, ongoing contributions, and market cycles that typically rebound over time.
Posted by GoCrazyAuburn
Member since Feb 2010
41107 posts
Posted on 4/4/25 at 9:37 am to
I can't remember who it was, but somebody a few weeks back posted a long and detailed post about essentially this. Wasn't even something that crossed my mind, but it really made a lot of sense when taking a step back. Thanks for sharing again.
Posted by SirWinston
Say NO to War
Member since Jul 2014
104464 posts
Posted on 4/4/25 at 9:38 am to
quote:

Wouldn't it be interesting if Trump refinanced our debt lower saving us billions while also winning this trade war and saving/generating billions more? Nah...that could never happen.


Posted by Bjorn Cyborg
Member since Sep 2016
35548 posts
Posted on 4/4/25 at 9:39 am to
quote:

would save $500B over a decade.


Drop in the bucket, amirite?
Posted by Powerman
Member since Jan 2004
173789 posts
Posted on 4/4/25 at 9:42 am to
quote:

While stocks get the headlines when they drop, the full picture of 401(k) performance includes bond gains, ongoing contributions, and market cycles that typically rebound over time.

Stocks don't only exist in retirement accounts. The stock market has already lost another 2.5 trillion this morning. If course that is subject to be reversed by the end of day.

This is the worst start to the stock market since the dot com sell off in W's first term.
Posted by TenWheelsForJesus
Member since Jan 2018
11391 posts
Posted on 4/4/25 at 9:43 am to
quote:

 Pension funds are going to be screaming from rooftops if they don't get their assumed 7% returns -- and they may eventually need PBGC protection and bailouts.


Pension funds are antiquated. Why should the country suffer because a few idiots don't understand math? My friend's dad worked for 30 years and then lived 30 years off his pension. Many pensions also pay out to people who were only there 5 years. That simply isn't sustainable.

quote:

You may not care about that, but if a big one like Central States goes down, it may take down the entire system.


So, they're too big to fail?
Posted by Meauxjeaux
102836 posts including my alters
Member since Jun 2005
46962 posts
Posted on 4/4/25 at 9:48 am to
Dats some serious debt refinancing progress news, baw!
Posted by Meauxjeaux
102836 posts including my alters
Member since Jun 2005
46962 posts
Posted on 4/4/25 at 9:50 am to
quote:

Crashed my 401k to lower 10y


Tell me you didn't sell you dummy
Posted by Powerman
Member since Jan 2004
173789 posts
Posted on 4/4/25 at 9:53 am to
quote:


Tell me you didn't sell you dummy

I'm sure he isn't taking early distributions from his 401K that come with penalties and taxes right after a short downturn
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