What if people moved 401K's to treasury funds? NOT about profits....

I know the profits would tank so disregard that aspect. What would happen though if people said screw these corporations, moved their 401K's to treasuries. What would happen to the market? Assuming it would crash pretty hard. What would the Government do with all this coin? Would they pay off the deficit? Probably a little. Would they try to implement more socialism? Yes they would. What would companies do? Would they stop pandering to the government? Would they try to earn real profits?

I'm not a finance wizard but assuming companies would start borrowing from the Fed at higher rates...no idea. I've been thinking about this crazy scenario for a while but I honestly do not know.

a reply to: Stupidsecrets

United States citizens already purchase the majority of our debt, how much more do you want us to buy?

a reply to: Stupidsecrets

Well the pharma is the biggest money maker now, soo people should start investing on them their jab business is making billionaires soo, people needs to start investing on them.

Govt wastes money. By the trillions. You'd be better off burying it in your backyard. At least it would still be there in 30 years. Sure, not worth much, but the govt would waste it ASAMFP.

originally posted by: marg6043
a reply to: Stupidsecrets

Well the pharma is the biggest money maker now, soo people should start investing on them their jab business is making billionaires soo, people needs to start investing on them.

Again, this is not about profit. It's about what would happen if Americans only invested in US treasuries. What would happen to the global markets. I do not know.

originally posted by: Stupidsecrets

originally posted by: marg6043
a reply to: Stupidsecrets

Well the pharma is the biggest money maker now, soo people should start investing on them their jab business is making billionaires soo, people needs to start investing on them.

Again, this is not about profit. It's about what would happen if Americans only invested in US treasuries. What would happen to the global markets. I do not know.

To global markets, not alot. It might make other countries dump their debt holdings though and that wouldn't be great.

a reply to: Stupidsecrets

This doesn't sound like investing, it's just... taxes?

originally posted by: Atsbhct
This doesn't sound like investing, it's just... taxes?

Technically United States citizens, via mutual, pension, individual and other funds, already invest in 78% of our debt. It's a solid investment as the United States doesn't default on its financial obligations but it cannot continue to increase in perpetuity. It's basically writing yourself an IOU.

originally posted by: Atsbhct
a reply to: Stupidsecrets

This doesn't sound like investing, it's just... taxes?

Again, this conversation has nothing to do with investing for profit...meh. Moving all 401K cycle funds to treasuries funds. What would happen if All Americans did it.

a reply to: Stupidsecrets

I'd like to think the American people would finally get affordable health care, but probably not considering so many middle class heads of the household seem fine with paying $500+ on average for health insurance every month, as long as it doesn't benefit poor people.

originally posted by: Stupidsecrets
Again, this conversation has nothing to do with investing for profit...meh. Moving all 401K cycle funds to treasuries funds. What would happen if All Americans did it.

Why would someone invest in something for no profit?

originally posted by: Stupidsecrets
I know the profits would tank so disregard that aspect. What would happen though if people said screw these corporations, moved their 401K's to treasuries. What would happen to the market? Assuming it would crash pretty hard. What would the Government do with all this coin? Would they pay off the deficit? Probably a little. Would they try to implement more socialism? Yes they would. What would companies do? Would they stop pandering to the government? Would they try to earn real profits?

I'm not a finance wizard but assuming companies would start borrowing from the Fed at higher rates...no idea. I've been thinking about this crazy scenario for a while but I honestly do not know.

Why would you only want to be in treasuries?

An investor wants the highest return possible relative to the risk they are willing to take. You can invest in bond funds through most 401k. A well balanced portfolio will already hold positions in treasuries.

Investors put their money in equities because the returns are higher even though there is more risk.

a reply to: Stupidsecrets

Well the market would crash first then all the corporations would declare bankruptcy.
All the banks would suffer the non payment of debt and the true debt holders, aka you and me, would get hammered by the banks failing.

The government would possibly gain in total dollars but the value of a dollar would be the same as a rupee or peso so you would basically have more of something worthless.

Besides, there would be a limit to available treasuries to purchase.

originally posted by: Stupidsecrets

originally posted by: Atsbhct
a reply to: Stupidsecrets

This doesn't sound like investing, it's just... taxes?

Again, this conversation has nothing to do with investing for profit...meh. Moving all 401K cycle funds to treasuries funds. What would happen if All Americans did it.

If all Americans did, it would crash the equities markets. Not only that, it would also make treasuries pretty worthless as the yield (interest rate) would collapse due to the demand. The more people that want treasurers, the less they have to pay in interest rates to satisfy those investors.

Bailouts.

2nd.

a reply to: Stupidsecrets

Well, okay, I would imagine, being somewhat of a pessimist, that the US Government would create treasuries out of thin air to sell the people cashing in their 401k assets.

The possible result could be a big plunge in values of the assets in 401k plans (mostly equities - stocks), and other non-treasury types of bonds, without much change in the value of the treasuries. It is a fantasy question, and that is my fantasy answer

originally posted by: AugustusMasonicus
a reply to: Stupidsecrets

United States citizens already purchase the majority of our debt, how much more do you want us to buy?

100% accurate and yet a fact that’s misunderstood by many…