Friday, October 11, 2013
JP Morgan Chase Sells Off All Short-Term Government Debt
http://www.huffingtonpost.com/2013/10/10/jpmorgan-chase-government-debt-sells_n_4080996.html. DUE 21 OCT 2013. Why do banks invest in US bonds in the first place?? Why are the banks selling off their bonds?? What does the impending debt ceiling have to do with selling off the bonds?? Is the US Economy in trouble?
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I think banks invest in US bonds in the first place because they are looking for short-term debt that can be easily bought and sold. Their incentives are to make more money in the long run. The banks are selling off their bonds because they feel like the nation could hit its borrowing limits. The impending debt ceiling has to do with selling off the bonds because by selling off the bonds, the banks are trying to improve their currency before the debt goes more out of control. Yes, I believe the US Economy is in big trouble because the US is in a lot of debt. They owe a lot of money and since the Government shutdown had affected us financially really bad, if they don't do anything about it soon, I feel like we might go deeper in debt.
ReplyDeleteI feel that banks invest into buying bonds because they want to be able to make a profit while being able to hold onto the money that they already have. They want to be safe and that means doing whatever they can to be prepared once the borrowing limit hits. The banks are selling off their bonds because of the nation getting closer to the borrowing limit. That limit will define if whether or not the US can pay back bondholders; the banks are selling while they know that they can still receive money. I feel that the US is in trouble because people are starting to realize to get their money while they still can and this may rub off on countries that we have bonds with and this will only push us further into debt.
ReplyDeleteI personally think banks buy bonds so they can make money while having control over the flow of money within the united states. Now banks are deciding to sell their bonds because they feel as if the United States will meet debt ceiling and be in a very bad position. Banks are trying to place themselves in a secure position by selling and this can be a bad sign coming for the US economy. The US economy seems like its going to be in a very bad situation soon based on current situations and a fix needs to be shown soon or else there may be some really hard times coming soon for us all.
ReplyDeleteBanks invest in US bonds because it is a secure and safe way to guarantee small profit quickly. They are starting to sell off their bonds because they know the debt ceiling will be reached in due time and that their investments may not be protected. It may not even be returned at all. They sold their bonds to put them in a safe place where they aren't entirely dependent on the issues of the debt ceiling. The US economy is in trouble because the only people who can or are making money are the top 1%. The income inequalities contribute to the need of certain services for the less fortunate, but there isn't any money to loan so that only increases the debt ceiling. It creates an endless cycle of debt.
ReplyDeleteBanks invest in US bonds because it is a sufficient way of making a guaranteed profit. The banks are selling their bonds due to the nearing of the borrowing limit. They are looking out for themselves financially. The debit ceiling relates to selling their bonds because JPMorgan does not want to raise that percentage due to their bonds and financial transactions. Yes the US economy is in trouble, with no money to borrow we will just accumulate debt as if it was a picture frame accumulating dust in an abandoned house.
ReplyDeleteBanks invest in US bonds because it is a safe and secure way guaranteed in making a profit. They are beginning to sell their bonds because debt will hit it's limit and begin to lose money. And the debt ceiling creates no help in being protected. All they are doing is trying to look out for themselves. And of course the Us economy is in trouble! all we do id borrow borrow and borrow without having the money to pay back. we are just getting deeper and deeper in debt. There would be no end.
ReplyDeleteBanks invest in US bonds and treasury bonds because they are government issued thus making themselves a guaranteed profit. The banks are also all-too aware that the US debt is accumulating and the debt-ceiling is not far off. This would mean that the government wouldn't be able to pay the banks' investors back which isn't very good for the banks' reputation. The banks realize that the government might not ever be able to give them back their money, so they're selling their bonds now in the hopes that they won't have to rely on the government in the first place. I believe it goes without saying that the US economy is in trouble. The debt and its interest is piling up and the US has no money to pay it all off. Investors could lose their money and more because the people we elected into office didn't manage our budget well enough, which is very sad to me.
ReplyDeleteBanks invest in US bonds so that they can make a profit. They are selling their bonds because America is moving toward its borrowing limit. The debt ceiling tells whether or not the US will be able to repay the people with bonds, which is why people are selling their bonds, in case they don’t get any money back. I think the economy is in trouble because right now everyone is selling their bonds and the US will be put further into debt, increasing the debt ceiling.
ReplyDeleteThe reason banks invest in US bonds is because it's an effective way to make a profit (adding onto the money they already have). The banks are basically trying to make sure they are prepared for the long run better yet the near future. The banks are selling off their bonds because they feel like the nation is getting closer and closer to its borrowing limits. The impending debt ceiling has to do with selling off bonds because by selling off the bonds, the banks are making sure that they are financially prepared and also that they don't get into trouble in the near future. Furthermore, I do believe that the US is in a whole lot of trouble because of our abundance in debt and financial issues. Recently, the government has been a main issue because of the shutdown; this has also added onto our debt. Without the proper solutions to our financial problems then we have no chance of getting to a "safer" place.
ReplyDeleteBanks invest in US bonds in the first place to initially make a profit. The banks are selling off their bonds because they feel like the US is near the borrowing limit and also the US will be reaching their debt-ceiling faster. The bank does not want to be in that situation their investments are not protected and the banks want to make sure THEY are safe. The US economy is in trouble because we borrow much more money than we have to repay, which will put us in more debt. Increasing the US debt will increase the debt ceiling and nobody wants that!
ReplyDeleteBased on the article I think that banks invest in bonds because they have the incentive on making a profit. Since the U.S ows plethora of money and it's nearing the debt-ceilling; they are more likely making sure that their bonds are no longer in their hands to cope with.
ReplyDeleteI think banks invest in U.S. bonds because they want to make more profit. For the last three weeks money market funds have been cutting back their exposure to short terms. I think banks are selling off their bonds because they feel that there are higher risk in assets. Since the past few weeks market funds have been cutting to short terms, people are afraid to invest money. Most economists and investors see the debt ceiling as a much more significant issues than selling off the bonds. Yes, our economy is in trouble. After the government has shut down a few weeks ago, we have lost a lot of money. we have even lost money that could have helped a lot of people in the shelter and people that couldn't afford Insurance.
ReplyDeleteBanks invested in US bonds because they were known for being a good bet or a financially safe investment.Banks are now selling off their bonds because they speculate that US bonds will no longer be financially safe investments. This speculation is directly correlated with the debt ceiling. When the US reaches its debt ceiling it will have to pay back its bonds. Banks speculate that the US will not be able to payback all their bonds. This would mean that if speculation turns out to be reality then US bonds are no longer a safe bet. If this all comes to pass and the US has to payback all their bonds or attempt to then US economy is in a deep pile of trouble. The US dollar would be devalued by the events meaning that our money will no longer be able to buy things at the prices we know now. For example, instead of a quarter for a gumball it'll be three quarters. This seems somewhat criminal to me becuase that would also mean that all the work done in order to obtain this money is in the same way devalued.
ReplyDeleteI think banks invest in US bonds in the first place because they are looking for short-term debt that can be easily bought and sold. Their incentives are to make more money in the long run. The banks are basically trying to make sure they are prepared for the long run better yet the near future. The banks are selling off their bonds because they feel like the nation is getting closer and closer to its borrowing limits. Most economists and investors see the debt ceiling as a much more significant issues than selling off the bonds. Yes, our economy is in trouble. Recently, the government has been a main issue because of the shutdown; this has also added onto our debt. Without the proper solutions to our financial problems then we have no chance of getting to a safer place.
ReplyDeleteBanks invest in U.S. bonds because it guaranteed their profits.They literally get every dollar they invest. Now thesse banks are selling their bonds because they fear that if the U.S. government reach its price ceilling, they wouldnt get their money back.Since after the shutdown, the economy of the nation remains undecided, these investors rather sell the bonds instead of risking their downfall. They feel that they are no longer safe.The impeding debt ceiling is proof that the naion has reached its borrowing limit. Of course our economy is in trouble because now we are not going to be able to pay off our debts and we have no vallue before any other nations. The ones who trade with us can decide to stop trading with us. Now, our economy/future is in the hands of others.
ReplyDeleteI believe banks invest in U.S bonds because it is a simple way to make profit. The banks are selling off bonds because there is a chance that the U.S government could default. A default would hurt many investors, and the banks don't want to loose money because of a possibility for a default. The debt-ceiling almost caused a Government default, and when the debt-ceiling issue rises up again, there is yet another chance for a government default. If a default were to occur it would drastically harm the U.S economy. If we can figure out a long-term solution to the debt-ceiling issue, then the U.S economy will be fine, but if not, it could negatively affect the U.S economy. The economy would no longer be safe and trust in the U.S economy would go down making less people invest.
ReplyDeleteThe banks make investments in the U.S. bonds because it guarantees a quick profit. The banks are selling off their bonds because they are getting near the borrowing limits and eventually reach the debt ceiling. The investments would not be protected and not get their money back. The impending debt ceiling has to deal with selling off the bonds because when they sell the bonds the banks are securing themselves financially. The U.S. is in trouble, we are already in a huge debt and with the recent government shut down it is not improving anything. This is just worsening the situation and increasing our debt .
ReplyDeleteBank invest in U.S bonds so that the government can use the money to build up the country and when they make money the investors get paid back with interest. The banks are taking away their short term bonds because the near future isn't really looking up so they may end up not getting paid back. With the impending debt ceiling, the U.S government will have a shortage of money to pay back the bonds it borrowed from its investors. The U.S economy will be in deep trouble after this.
ReplyDeleteBanks invest in U.S bonds so that their able to make profit. They feel as U.S is about to run out on their limits and reach debt-ceiling. The US economy is in trouble because we borrow much more money than we have to repay, which will put us in more debt. Since the shut down we don't even have money that was suppose to help people who are in need. The economy is in danger, we have to wait and see the results.
ReplyDeleteBanks invest in bonds because it is a quick, simple way of making a profit. Banks are starting to sell there bonds because investors believe that the U.S. government is close to hitting the debt ceiling, and when it does, they won't be able to pay the bondholders back and be in debt. Impending debt ceiling means that the government is close to reaching its debt limit and selling off their bonds is the best method possible that will ensure that banks are secured. Either way, the U.S. economy is in trouble. The money we pay back as debt is the same momey we are borrowing. It is always going to be a never ending cycle of debt.
ReplyDeleteBanks invest in US bonds and treasury bonds because they are government issued it is a secure and safe way to guarantee profit quickly. The banks are selling their bongs because they realize that the government might not ever be able to give them back their money, if the debt ceiling is reached. They're getting rid of bonds now in the hopes that they won't have to rely on the government to pay them back later. The US economy is in trouble because it is spending much more than it is bringing in, through revenue. The U.S cannot continue down this road of growing debt, having such a large amount of debt looming over the U.S economy is a danger. Especially if those who are supposed to be helping solve the debt problem are contributing to the issue.
ReplyDeleteBanks invest in the US bond because they want to make a profit. Banks are selling off their bonds because they feel if the U.S. government were to hit the debt ceiling, they would not be able to promptly pay back bondholders. Which means that investors will be losing money. The impending debt ceiling has to do with bonds because the U.S money is where they get their profit and if the debt ceiling rises then the bank wont have enough money to pay the investors. The US Economy is in trouble, we have a high enough debt ceiling raising it wont help at all. Changes need to be made to save our economy.
ReplyDeleteBanks are investing in bonds because they want to be able to be in a secure place. Bonds give you profits, and the banks want to make sure that when the economy crashes, they won't be affected by it so much because of the amount of cash they earned from their bonds. JPMorgan Chase had 257 billion dollars in their account and they didn't want to lose their money so they cut back on the bonds. If they were to hit the debt ceiling, it would not be able to promptly pay back bondholders which means people would lose money.
ReplyDeleteI feel that banks invest in US bonds because it is a safe guarantee to earn profit reasonably fast. They are selling their bonds because the nation is getting closer to its borrowing limit and know that if they don't sell their bond the government might not be able to compensate. The US economy is defiantly in danger.
ReplyDeleteIt's really about the money when it comes to these mutual funds, the banks are trying to make as much money as they can to help their own company out other then the bondholder. Cutting close to the debt ceiling just last week the banks thought that would in the end hurt their company and not bring in any type of money for profit. they need some type of security in this situation that is way JP Morgan& Chase don't want to do any time of business with the U.S. Government that would not bring in good fortune.
ReplyDeleteBanks invest in US bonds because it is a secure and safe way to guarantee small profit quickly. Which in time accumulates over time. They are selling their bonds because if the economy crashes again, it won't hurt them a whole lot. They had many accounts, which is a lot of money, so if the economy crashes, that'd be a lot of money lost, so they cut back to avoid that. If they were to hit the debt ceiling, it would not be able to promptly pay back bondholders which means people would lose money.
ReplyDeleteIn the first place banks invest in bonds to invest and make a profit, while feeling secure and safe. If the economy crashes again that will cost them a lot of money, so banks are backing out of their investments now and selling their bongs. If they were to hit a debt ceiling then people would be losing money, which is making them look bad. Most banks and investors see debt ceilings as a worse issue than selling off bonds. It is obvious that the US economy is in trouble, we were in a long government shut down due to our large debt. Other nations are going to stop trading with us because we are unable to pay our debts. Once other nations stop the trade system we lose even more money and the products that were being imported over here. The government does not realize the long term effects of anything.
ReplyDeleteBanks invest in bonds because they are assured a profit. They are attempting to sell off their bonds because of our impending debt ceiling. The economy is in trouble because we as a country are spending more money than we are taking in.
ReplyDeleteBanks invest in U.S bonds because its is a good way to make a quick and easy profit. Banks have decided to sell off their bonds because the government is close to potentially hitting debt ceiling. hitting debt ceiling would not allow the government to pay them right away. I believe that the U.S economy is in trouble. This is one of the many issues we have going on economically. its only going to get worse
ReplyDeleteBanks invest in US bonds because they are a safe way to make money and the US has a high credit rating. The banks are selling off because the US is on the verge of reaching its limit as far as borrowing. As the US gets closer and closer to that limit, the banks' money is being put into increasing risk. I do believe the US economy is in trouble, and the government shutdown didnt help. With our debt rising at a steady rate and not enough cutbacks being made, the debt will be out of hand soon. As soon as a foreign country like China calls our debt, we are done for.
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ReplyDeleteBanks invest in bonds because they want to make profit and they know that it is guaranteed. banks are selling off their bonds because they are scared that the government is going to reach debt ceiling, and won't pay them back right away. Yes the US economy is in trouble because if we keep on borrowing money than what we can pay back will only raise our debt and will lead us to debt ceiling and that isn't something we don't need.
ReplyDeleteBanks invest in bonds simply to make profit for themselves. Banks are selling their bonds because they know they are reaching their debt limit. The impending debt ceiling has to do with this because the banks are assuring a safe future for themselves. They want no trouble in the near future. Evidently, the American economy is in trouble due to a high debt and all other financial issues that keep adding onto this debt.
ReplyDeleteI think banks invest in bonds because they know that it is an easy way for them to make money. The banks are selling their bonds because they want to protect themselves. The debt ceiling and the selling of bonds correlate because once the government reaches our debt ceiling the bond investors won't get paid back until we fix our debt issue. Personally, I think the US economy is in trouble. We spend much more than we can and once a country like China wants their money we won't be able to do anything.
ReplyDeleteYes the US economy is in trouble. If the US raises the debt ceiling, they are expected to go from a AAA bond to a AA bond lowering the US credibility. The whole reason that banks invested in US bonds is because the US economy was stable and reliable. Banks were looking to make a profit off of the US bonds but if the government goes through with raising the debt ceiling, the US becomes unstable. Borrowing money while they're in debt. The banks are playing it safe and selling off their bonds before something radical happens like a default.
ReplyDeleteBanks invest in U.S bonds because its a secure way to make money.I think the reason the banks are selling their bonds is because of the disagreement in D.C. Disagreeing about the debt ceiling is the reason they are selling.The U.S economy is not in trouble it safe and will stay relatively safe.
ReplyDeleteBanks invested in US bonds because they were known for being a good bet or a financially safe investment. I think the reason the banks are selling their bonds is because of the disagreement in D.C. Disagreeing about the debt ceiling is the reason they are selling. The whole reason that banks invested in US bonds is because the US economy was stable and reliable. Banks were looking to make a profit off of the US bonds but if the government goes through with raising the debt ceiling, the US becomes unstable. Borrowing money while they're in debt.
ReplyDeleteI think banks are buying investments to make a profit even when they have control of the money within the U.S. banks now are trying to sell their bonds because they believe that the United States is getting closer to the debt limit and their investments may not be safe anymore. The debt ceiling have to do with selling because banks Are trying to improve their money before debt hits hard. They are only doing things for themselves in this situation. With out a doubt the economy is in trouble the U.S. debt is very high we own so much and that is why banks are trying to escape before they lose everything.
ReplyDeleteThere are many reasons why banks invest into bonds. One of these reasons is to be able to make a profit while being able to hold onto the money that they already have. They want to keep their money safe at all costs and that means doing whatever they can to be prepared once the borrowing limit hits. The banks are selling off these bonds because of the nation getting closer to the borrowing limit. That limit will define if whether or not the US can pay back bondholders; the banks are selling while they know that they can still receive money. The US is in trouble because people are starting to realize to get their money while they still can and this may rub off on countries that we have bonds with and this will only cause us to increase our national debt.
ReplyDeleteBanks invest in U.S. bonds because its a really great way of making a profit that you know will happen. Banks are now selling their bonds because they are being very careful about looking out for their own financial needs. The rising of the debt ceiling has caused many banks to sell their bonds because they feel that the country has gone too far with their borrowing and JP Morgan also does not want the percentages to rise. The economy of the US is definitely in trouble. There is not enough money in the economy and the debt will just keep rising and rising.
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