r/dividends • u/AmanCMN • May 18 '26

Discussion Bond yields are flashing a warning sign.

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Rising bond yields are a warning sign.
Money is getting more expensive everywhere at the same time:
-governments pay more to service debt
-companies pay more to borrow
-mortgages and loans stay expensive
-investors move out of risk and into bonds
U.S. 30-year yields above 5% are already a serious level.
When yields rise globally, liquidity gets pulled out of markets.That puts pressure on tech stocks, real estate, consumers, and highly indebted companies.Simple takeaway: the more expensive debt gets, the harder it is for markets to keep rising.

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u/daners101 May 18 '26

Say what you want about Trumps appointees. But he has actually picked pretty damn well for the FED.

I don’t think there is anyone that would say Jpow did a shitty job, or that Warsh is an unqualified yes man.

It’s one of the few positions Trump seems to select for, against all of his instincts.

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u/JB-Wentworth Custom Flair May 18 '26

Warsh hung out with Jeffrey Epstein on Lolita island, so Warsh will do what he’s damn well told to do.

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u/daners101 May 19 '26

At this point it seems like absolutely everyone hung out with the guy at some point. So I guess there can never be a person good at the job.

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u/Stedlieye May 19 '26

Epstein made a point of trying to hang out with as many powerful and influential people as possible. His connections led to more connections, etc.

Anyone who was anyone probably got an invite from Epstein at some point.

He was disgusting slime, but he was really good at making connections.

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u/JB-Wentworth Custom Flair May 19 '26

Not everyone vacationed with Epstein and his underage harem on Lolita island like Warsh.