U.S.Debt Selling , management homework help
"What is the effect of U.S.Debt Selling by other countries on the U.S. Stock Market? Discuss"http://www.bloomberg.com/news/articles/2015-10-18/china-s-selling-tons-of-u-s-debt-americans-couldn-t-care-less-?cmpid=yhoo.headlineHere is an example,It is never a good thing when the primary consumer of US debt, China, decides to stop buying our debt and start selling some it. This may cause a panic which could lead to a future recession. Other countries could look at this as the US economy is weakening and has an unstable future. If this were true, than no other country or investor would be willing to buy the debt. Japan is a country that enjoys buying our debt and may become the primary owner of our debt. Next, China may be selling their debt because their economy is weakening and slowing down. Selling the debt would put more money into China’s economy and will reduce the risk of not having to worry about the United States not being able to make future payments. The positive aspect of this story is that Americans are buying more of the debt which means that our citizens have confidence in our economy or else they would not want to buy it.
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