Marketplace examines the bond market frenzy as 10-year T-note yields hit their highest since 2007 and the Fed raises rates for the first time in over three years. The episode checks in with bond traders suddenly thrust into the spotlight, explores how higher borrowing costs will further stall the housing market, explains the economic concept of fiscal dominance, and looks at how young people are using 'repayment avoidance' tactics like Venmo ghosting to manage tight finances.
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Curious
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Fiscal Dominance: When Government Spending Overrides Monetary Policy
The episode explains 'fiscal dominance,' a situation where government borrowing and spending overwhelm the central bank’s ability to control inflation.
Bond traders are thrust into the spotlight as 10-year T-note yields hit their highest since 2007 and the Fed raises rates, making their daily work unusually high-pressure and public.
The Rise of 'Repayment Avoidance' Among Young People
Young people are increasingly practicing 'repayment avoidance' through tactics like Venmo ghosting, where they ignore payment requests to cope with financial strain.