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Are bonds just a beautiful debt for the rich?
I used to think bonds were just boring things for old folks who liked safety. But in reality, this is a sophisticated financial game that governments and large corporations use to fleece naive investors like us.
When you buy bonds, you are simply a lender with the fancy label of "investment." They promise to pay periodic interest and return the principal at maturity, but who guarantees they will keep their word? Especially in this uncertain economic climate!
All types of bonds have the same nature - whether issued by the government with the fancy name "golden rim securities" or by companies calling them "corporate bonds." They are all meant to take your money for their purposes.
To be honest, the entire game depends on interest rates - when interest rates rise, bond prices fall. So your money evaporates just because of the decisions made by those big central bank figures!
They call bonds "safe haven assets," but safe for whom? For those who are already wealthy and want to preserve their assets? What about those who truly want to get rich?
One humorous thing is that the bond market is used as an "economic indicator." An inverted yield curve signals a recession? I see it as just an excuse for "experts" to make wild guesses and profit from investors' fears.
Compared to cryptocurrencies, bonds do seem "more stable." But what is stability worth when the meager returns can't outpace inflation? That's why many people are leaving bonds to seek real opportunities in the crypto market.
Is the legal environment for bonds "well established"? Of course, because the entire system is designed to serve the financial elite!
In summary, bonds are not bad, but they are a part of the traditional financial system that has been and is continuing to create a divide between the rich and the poor. Understanding them can help you avoid traps, but do not be dazzled by the promises of their "safety" and "stability."