Well, howdy there, Internet people, it's Bell again.

So today, we're going to talk about Trump shaking the backbone of the U.S. economy.

So through the videos on the One Big Beautiful Bill, I offhandedly mention how the bond market isn't going to like it,

because Trump is creating trillions of more debt than usual.

I mentioned more than once that passing the big beautiful bill would hurt the bond market.

Well, apparently just passing the house was enough.

Wall Street traders are stepping away from U.S. debt.

It's happening so often, the trend has been given

the nickname of Sell America. You don't need to know a lot about the markets to know that a trend

that implies dumping everything associated with long-term U.S. investment is bad. I was really hoping

we wouldn't have to dive into this, but it seems like time.

The reason the bond market is so important is because it holds all the other markets together.

When yields on bonds go up, it sends interest rates on a lot of consumer debt up, like mortgages.

Yields are the amount the person buying the U.S. debt can expect to make.

Basically, the bombs are supposed to be very safe investments because the U.S. will always pay.

Nothing is zero risk, but they're supposed to be very, very safe.

The higher the yield, the more risk is being seen.

If you can get 5% from a 30-year bond that is very low risk,

why would you loan money for a 30-year mortgage at 5%?

The mortgage is riskier than a bond.

So as a result, interest rates on mortgage will go up, and the home buyer has to spend more.

Now, 5% is high for a yield on a 30-year treasury.

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