Hmm, then can you be more specific what “people” and “institutions” you’re referring to in “Why are people willing to hold so much government debts at zero percent interest rates? Why don’t the institutions that hold so much debt instead buy index funds?” Are you talking about governments? Because almost all people and institutions don’t have trillions lying around.
In total there are 26 trillion dollars in US government debt. That’s 3 trillion more then at the beginning of this year. That money has to come from somewhere and it’s hard for me to understand where that kind of money comes from.
My sanity check reflexes tell me that it’s strange that this money is easily available but I might not have a good grasp to ask the right question ;)
I don’t know who owns the majority of US treasury bills. In total the US government seems to owe $26 trillion in July 2020. 6 trillion seem to be held intragovernmentally by the FED and other sources which is more understandable but it’s unclear why so much other institutions are willing to hold them.
Hmm, then can you be more specific what “people” and “institutions” you’re referring to in “Why are people willing to hold so much government debts at zero percent interest rates? Why don’t the institutions that hold so much debt instead buy index funds?” Are you talking about governments? Because almost all people and institutions don’t have trillions lying around.
In total there are 26 trillion dollars in US government debt. That’s 3 trillion more then at the beginning of this year. That money has to come from somewhere and it’s hard for me to understand where that kind of money comes from.
My sanity check reflexes tell me that it’s strange that this money is easily available but I might not have a good grasp to ask the right question ;)
I don’t know who owns the majority of US treasury bills. In total the US government seems to owe $26 trillion in July 2020. 6 trillion seem to be held intragovernmentally by the FED and other sources which is more understandable but it’s unclear why so much other institutions are willing to hold them.