Bond insurers? Toast. Political expediency will be the stake through their heart. They will be forced to liquidate "assets" (debt) at bargain basement prices...leading to trouble at many banks and other insurance companies.
Oh, and all those state and municipal bonds? Those are held mostly by banks and insurance companies...and retirement plans, most of which are Public.
One big crash away from the cascade.
Don't even get me started on Europe. They have the same problem only worse. Same with Japan.
ECB Chief Mario Draghi Says The Worst Of The Euro Zone Crisis Is Over
Anyone buying sovereign debt right now is asking to have their money taken.
With the ZIRP in place, might as well invest it in productive assets...like an oil well. Oh, wait, Bammy's in office.
Better yet, bury it in your back yard.