Trump is now threatening Americans' 401(k)s

Question

Trump has threatened to default on American debt, apparently completely ignorant of the fact (or maybe he just doesn't give a damn) that about $5 trillion of that is owned by individual citizens, mutual funds, insurance companies and pension funds.

https://www.marketwatch.com/story/trump-just-threatened-your-401k-2016-05-10

DogbiteWilliams · Answer

Trump has threatened to default on American debt, apparently completely ignorant of the fact (or maybe he just doesn't give a damn) that about $5 trillion of that is owned by individual citizens, mutual funds, insurance companies and pension funds.

https://www.marketwatch.com/story/trump-just-threatened-your-401k-2016-05-10

wallstreetcappers · Answer

Well there really is no reason to be invested in a government bond fund at these levels.

Anyone buying a long bond fund now will probably regret it when the value of those bonds go down and you lose on the principal side.

I'd rather be in a dead MM than owning a government bond fund.

dl36 · Answer

I don&#x27;t know if trump is ignorant.  His followers maybe but I think when it comes to finance and economics trump knows what&#x27;s up

DogbiteWilliams · Answer

Yes, the yield is almost zero.  Dangerously low interest rates are the Federal Reserve Board&#x27;s fault, not Obama&#x27;s.

DogbiteWilliams · Answer

I mis-posted the above quote.  The first sentence is WSC&#x27;s and the second sentence is mine.

SportsFan9698 · Answer

Actually I think it is inevitable that the US will default on the debt, it is simply a matter of time

With that being the case, might as well default on all of it, clean slate. What are the consequences? Nobody will loan the US Government money because of horrible bond rating? Okay that is good with me. They don't need to borrow money, and they have proved that they really should not be borrowing money.

SportsFan9698 · Answer

And anybody that is harmed in the default gets no sympathy from me... wether that be a foreign government or a US bondholder.  They are all a bit stupid for thinking that US debt would be a good asset

SportsFan9698 · Answer

Hey DogbiteI want to thank you continuing to bring many of the great thoughts and analysis that makes Trump THE CANDIDATE for 2016.  I think pretty much all of your posts here trying to slam Trump work for him.  The voters get it... you do not.

Trump is now threatening Americans' 401(k)s

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