How does a $1.5 trillion bond boom in Texas affect the rest of the US?
It may seem like a simple answer, but it is not, says one economist.
And this time around, it will be a bigger deal than the last time around.
In the past, it was easier for investors to get into Texas because of the state’s favorable tax rates and high property values.
Now, that may be no longer the case.
And it’s not just investors who will be impacted.
Property values are also likely to fall in many other US states, as more Texas residents leave.
And the boom could even have a ripple effect beyond Texas.
Investors are not the only ones who will see a big impact from the bond market boom.
The bond market has become a global phenomenon that is not limited to Texas.
The US is the second-largest holder of US government debt, after Japan, according to data compiled by Moody’s Analytics.
The global bond market is worth $5 trillion, according the Oxford Institute of Economic Affairs.
It’s also worth $2.6 trillion in Europe, $2 trillion in Japan and $1 billion in the United Kingdom, according data compiled last month by the Bank of England.
The Texas boom will affect global bond markets, too, with a slew of new bond issuers joining the fray.
The biggest US bond issuer, BNY Mellon, said it plans to issue more than $100 billion in new bonds in the coming year, and has raised $10 billion in debt.
A number of major banks have also raised $50 billion in bonds this year, according for example to Reuters.
But in the US, bond yields are currently well below their peak.
The yield on a 10-year Treasury note is currently 0.9%, according to the Federal Reserve.
Bond yields are generally lower than those on U.S. Treasury bills, which have averaged about 1.9% for the last five years.
The bonds are expected to be used for long-term investments, such as property and other investments.
The yield on U and other long-dated bonds will likely rise, but not by much.
The US government has also raised a record $100bn in debt, and some bond issuances are already paying back their investors.
The Federal Reserve, which manages the federal debt, will issue $75bn of new bonds this month, according Reuters.
The money is being held by a variety of financial institutions, including the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the Office of the Comptroller of the Currency and the National Credit Union Administration.
But the Fed will also issue new debt to banks, corporations and households.
So far, $80bn of those new bonds have been issued, according To The Wall Street Journal.
The Fed will issue another $70bn in bonds next month.
“It’s not a bubble.
It will not lead to a recession,” said Robert Shiller, the head of the New York Fed, in a speech last month.
But some analysts believe the bond boom may lead to some of the worst downturns in US history.
In a recent article for Bloomberg View, David Rosenberg said that the bond price boom in the Texas market could lead to the “most catastrophic economic crisis since the Great Depression.”
If the bond bubble is overvalued, it can create a bubble of its own, said Mr. Rosenberg.
If the Fed raises more money to buy up more debt, the result could be a financial meltdown that could lead people to lose everything, he added.
Investment banks have taken a big hit from the recent bond boom.
Moody’s downgraded US banks from A to AA- and US government bond ratings from A- to AA, saying the US is on track to lose $2tn in GDP over the next decade.
“The biggest threat is the Fed could overbond,” said Mark Kantrowitz, chief investment officer at the investment bank CitiGroup.
“The risk is that a lot of people will lose their jobs and start to go into default.”
The US central bank has not yet commented on the bond bubbles in Texas.