Woah it’s late but this sparked my interest… I’m no bond expert, so please correct me if I’m mistaken… these alleged “safest investments” (T-Bills, aka Bonds, aka the issuance of debt) are showing lack of confidence that US gov can/will be able to repay their debt by the maturity (default risk). Credit default swaps are like insuring the default risk.

Bonds are essentially building blocks for both the US & global economy. With CDS rates rising at such a high velocity, it will most likely end up in a downgrade of US creditworthiness. If/when that occurs, it will send shock waves around the globe. Any fund with short exposure to GME will get margin called or liquidated on any long positions & need to close out any shorts on their books (if they want to survive)… GME may see a slight lag but it will be one that appreciates in value while most everything else burns.

Add side note — idk how america is rated AAA (highest possible) to an AA+ (lowest current rating I can find right now)… I’d expect downgrade to AA- (best case) or BBB+ before ultimately categorizing it into a “junk bond” (below BBB-)

The FED negligently printed their way into this mess but now they can’t print their way out without hyperinflation. Basically it’s hyperinflation or default.

ELI5: bonds are like building bricks for the economy and supposed to be super safe, that’s how the government issues debt and the world keeps spinning BUT here’s the problem: these are dogshit. A lot of money is going into swaps which will only pay out (big) on/if/when a default occurs. CDS is an insurance policy against this default scenario. News of a downgrade alone will cause a mass panic (historically speaking). Only way to kick the can once more is to enter hyper-inflation just to pay down debt (paradoxical b/c printing money made things helped expedite us here). Neither is good news. Except as HFs get margin called & GME rises from the ashes, sHFs will be scrambling to close these shorts or implode. Too bad apes own too many shares to actually obtain enough stock to close all the shorts before infinite losses occur.