Some institutiojnal buyers want the safety of Treasury bonds over dumping all their cash into The Big Casino. Raising interest rates means more of them buy govt. bonds; lowering interest rates means they borrow Fed money instead, since it means negative interest rates re inflation. It isn't rocket science. Waiting to see what the FEd is going to do re interest rates is temporarily uncertainty, especially for foreign govts. and corps, hence its effects on the markets. Negative interest rates mean free money for the big prime borrowers and looser loan requirements and more money going out, to mortgage lending, corporate spending, etc., i.e. corporate welfare.
de-dollarization
- Thread starter goat
- Start date
Some institutiojnal buyers want the safety of Treasury bonds over dumping all their cash into The Big Casino. Raising interest rates means more of them buy govt. bonds; lowering interest rates means they borrow Fed money instead, since it means negative interest rates re inflation. It isn't rocket science. Waiting to see what the FEd is going to do re interest rates is temporarily uncertainty, especially for foreign govts. and corps, hence its effects on the markets. Negative interest rates mean free money for the big prime borrowers and looser loan requirements and more money going out, to mortgage lending, corporate spending, etc., i.e. corporate welfare.
Based Chad
Was it me?
so its buying bonds versus borrowing the cash.
Based Chad
Was it me?
people unaccustomed to unlimited borrowing ability are not accustomed to this particular conundrum.
Basically, yes. All depends on which is the better deal. If you're big enough, the Treasury will hand you free money, so it's not like they actually need it when they borrow it. And with the limited liability scams, they never have to pay it back when they get upside down on their spending sprees and lax retail loans.
people unaccustomed to unlimited borrowing ability are not accustomed to this particular conundrum.
The biggest corps have current P/E ratios on the 40's and 50's. Lots of margin borrowing speculating on just Nvidia alone.
AI Overview
Nvidia's P/E (Price-to-Earnings) ratio is approximately 51.33 as of late August 2025, based on the Trailing P/E (TTM) from Yahoo Finance. This ratio indicates that investors are willing to pay about $51 for each dollar of Nvidia's earnings over the past 12 months.
That one company alone has a larger cap than the entire Russell 2000.
AI Overview
Nvidia paid a dividend of $0.04 per share in the calendar year 2024 and is expected to pay at least $0.03 per share in 2025, based on dividends declared so far
.
Ludicrous. The Top 7 are bound to go bust and wipe out a lot of fake 'equity', which will be good news for the lower priced stocks when all that gambling on the AI bubble bursts.
Based Chad
Was it me?
zombie corporations.
Based Chad
Was it me?
this is why we can't have nice things.
Just for grins, check out why the Feds stopped using GNP as a measure of economic activity and changed to using the GDP scam. That is why foreign banks like the Japanese don't go by FEd claims of what our economy is really doing and calculate their own U.S. inflation rates.