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clearstack 14 hours ago [-]
5% on the 30-year raises the risk-free rate, which changes the equity discount rate. a 40x stock looks very different at 5% vs 2%. growth stocks re-rate when yields move
andsoitis 22 hours ago [-]
as debtor, you have to pay a higher price when the creditor's risk for non-payment increases. power of the market.
dlcarrier 21 hours ago [-]
The US can always print money; it's the expected inflation dictates the value of bonds.
nsvd2 16 hours ago [-]
Well, yes, but that's another way of saying the same thing. If the US can't pay and is forced to devalue their currency, thus tanking the value of your investment, you lose money. Therefore, the likelihood of this drives interest rates up.
Enthusiasts were still using it a and releasing updates, over a decade later.