r/ProfessorFinance

The US has paid the highest borrowing costs to sell 30-year bonds since 2001, as investors fret over the country’s mounting debt pile under Donald Trump’s administration as well as inflation that remains stubbornly high.

A $25bn Treasury auction of 30-year bonds on Thursday drew yields as high as 5.22 per cent, according to the US Treasury department. It marked the highest yield since the 5.52 per cent paid in August 2001, after which 30-year auctions were suspended for almost five years.

“All in all this is problematic for the Treasury. They have to fund the government at more expensive levels,” said Gennadiy Goldberg, head of US rates strategy at TD Securities.   

The bond sale comes on the heels of a $42bn auction for 10-year notes on Wednesday, which were sold at the highest yield since 2007.

The national debt — and the cost of borrowing — have roughly doubled over the past decade, fuelled by vast spending during the coronavirus pandemic. The government now spends more on servicing its debt than it does on national defence.

Trump returned to office vowing to bring America’s public finances under control, but nominal debt has since risen at its fastest rate outside of the Covid era, after the administration pushed through sweeping tax-cut legislation with the president’s so-called big, beautiful bill.

Debt held by the public outstripped GDP in the first quarter of 2026, according to government data analysed by the Committee for a Responsible Federal Budget.

According to the Congressional Budget Office, a non-partisan watchdog, the national debt is on track to surpass its post-second world war peak of 106 per cent by the end of the decade and hit 120 per cent by 2036.
The fiscal factors have been compounded by concerns the Federal Reserve will struggle to control a bout of high inflation as an energy price surge triggered by the war in Iran exacerbates the price pressures created by tariffs and booming spending on AI infrastructure.

I’ve been thinking that the modern finance bro is basically Patrick Bateman minus the murdering.
Not necessarily in a bad way either, because I’m definitely guilty of half of it.
There’s this weird obsession now with having everything dialled in. Gym before work, protein-heavy diet, supplements lined up on the kitchen counter, sleep tracked religiously, nice suits, nice watch, good restaurants, skincare routine that would have been considered suspiciously advanced for a man 15 years ago.
Somewhere along the way, being good at your job in finance stopped being enough. Now you also need visible abs, perfect bloodwork, a tailored wardrobe and a resting heart rate of 48.
And I completely get the appeal. There’s something satisfying about trying to optimise every part of your life. Career, fitness, food, clothes, sleep. It all becomes one big performance review.
Which is why watching American Psycho now is quite funny.
Patrick Bateman was supposed to be an absurd exaggeration of the image-obsessed Wall Street guy.
Instead, 25 years later, half of us watched it and thought:
“Okay, obviously the murdering is a problem… but what moisturiser was he using?”

Building a grain flat in a middle of Iowa after civil war and the railroad isn’t even nowhere close to reach it.

Almost get liquidated on it’s ultra America bull and toil for years to make sure that those position isn’t liquidated at all.

Get kicked out of exchange and still find a way to hold on to its America bull position.

Literally build warship in Minnesota to be shipped downriver.

When faced with liquidity crunch position sold the fertilizer company instead of liquidating the America bull position.

Get proven after dozens financial crisis & Great Depression, two world war, one cold war and even greater number of “America is finished and in decline”.

Never let anyone (especially retail) to make a bid for even 5% after 160 years even though every single investment banker on planet earth keep spamming their email every single year.

The dollar has been challenged repeatedly. Why hasn’t another currency replaced it?

Michael Saylor’s breakdown of how different assets have performed (economic value over the past ~6 years):

Cash? Economic value: –7%/yr

The US dollar has lost around 7% of its economic value every year for 100 years, as the price of scarce assets rises while the purchasing power of cash falls.

Bonds? Economic value: –1%/yr

Bonds returned around –1% a year over the past six years, which is why they are considered “a mistake” when they fail to keep up with currency debasement.

Housing? Economic value: +7%/yr

Real estate has returned around 6-7% a year, roughly keeping pace with currency debasement. The challenge is that taxes, insurance and maintenance can eat into those gains unless the property also produces income.

Gold? Economic value: +13%/yr

Gold returned around 12-13% a year over the past six years, and its scarcity is one reason it can preserve wealth better than cash.

S&P 500? Economic value: +15%/yr

The S&P 500 it returned around 15% a year over the past six years, and is seen as a simple way to invest without having to choose individual companies yourself.

Nasdaq / Tech Stocks? Economic value: +18%/yr

The Nasdaq returned around 18% a year over the past six years. Tech stocks are a stronger performer than the broader market, but with greater exposure to the fortunes of technology companies.

Bitcoin? Economic value: +33%/yr

Bitcoin returned around 33% a year over the past six years, outperforming every other asset in the comparison. It is seen as scarce digital capital because there can only ever be 21 million Bitcoin but it’s very volatile.

Does the 6-year window change anything for you?

Where would you rank these assets yourself and which of these would you actually put money into right now?

Folks.

People are expensive (Tennessee McDonald is like 17-18$ per hour) in fact you better be careful what you wished for if you wish these part to be cheap.

Cars are expensive (the cheapest new one is still ~20k let alone the most sold out car in the US (burger panzer F-150)).

Fuel is expensive (15c per km assuming it’s 1 L/ 10km).

So of course DoorDash food cost 30$.

If you’re not earning 270-700k (and keep adjusted for inflation) your time isn’t expensive enough to order DoorDash.

Go out/ even better cook.

EDIT:

In fact these whole discourse angers me.

They want their DoorDash driver to live in extreme poverty because they think they’re too elite to pick up their own food/ cook for themself.

Who the fuck do they think they’re?