Now the United States’ bond s apparently not AAA anymore, but where have investors flocked to during this week on the stock market? The Treasury Bond. Investors have disregarded the view of S&P that the U.S. bond isn’t as safe as many thought. The rates that the U.S. pays interest on its debt has decreased this week to 0.52%, and 32 billion has been bought in Treasury bonds just in two weeks. This is a historically low rate to pay interest on our debt.
The stock market is going crazy right now because it really doesn’t know what’s going on in the world. The markets of concerned about the U.S. economy, the U.S. downgrade, possible downgrades in EU countries, the European debt crisis, and the faltering global economy. Investors are scrabbling, and they really don’t have confidence. I still think it’s funny that even though the U.S has been deemed a riskier investment many investor have ignored S&P’s warning and still invested in the “risky” treasury bond.
There is some other good news too. First, oil prices are falling which is good for the average America. Also, gold prices are soaring; sell your gold! But, please don’t buy the right-wing claims that gold is where you should be putting you money, just like every other stock it can rise and fall in value too. Everyone must remember that the stock market always has bad weeks, and eventually these worries about global economic condition will be forgotten.