The Treasury Payment System Elon Musk Now Has Access To

Bullish

• $TREASURIES— Potential increased demand for Treasuries during a crisis, as investors may paradoxically buy more bonds in response to missed coupon payments.

  • “I put myself in the category of if you own a bond and you miss a coupon, you freak out. You buy more bonds.”

    Joe·31:18Hear it

Bearish

• $TREASURIES— Concerns about operational failures in the Treasury payment systems that are not being priced into financial markets, suggesting potential risks for Treasury securities.

  • “Every financial market in the world, in the country in the world, should be pricing in the operational failure uncertainties of of this system. Every single financial market should be pricing it in and none of them are. None of them are even close.”

    Nathan·27:17Hear it
• $FINANCIALS— Potential systemic risks in the financial system due to the interconnectedness of critical infrastructure and reliance on outdated COBOL systems, particularly in Treasury and Federal Reserve operations.

  • “Bond payments run through the system. There's another COBOL system at the New York Federal Reserve which I know less about Uh-huh. That was also part of that, but I think it still foundationally relies on the COBOL systems that it communicates with at the treasury.”

    Nathan·28:23Hear it

Not investment advice.