Posted on 05/14/2010 7:36:56 PM PDT by TigerLikesRooster
Debt overload, and the hunt for a successor to U.S. bonds
Abandoning Treasurys for comparatively safer bets, from Australia to Brazil
/snip
Hasenstab and other bond investors have begun to question whether the U.S. Treasury bond market can still be called the safest investment in the world, as attention to Washington's growing deficit spending has come into sharper focus with the debt problems that are engulfing Greece, Portugal and Spain.
(Excerpt) Read more at marketwatch.com ...
P!
As if they’ll find safety there!
Well, some will manage to survive, but many are actually looking for the place to die. They are not knowing it yet.:-)
The world economy is a house of cards.
I did a lot of research before moving to North Florida USA, near Georgia. I like my chances here, come what may.
I would not want to be depending on a government check right now because soon they will bounce.
As long as investors are willing to buy US debt, checks will flow. Right now banks can borrow at 0.5% from the fed and invest in 30 year treasuries and get 4.5%. Nice spread and (currently) risk free. No money to small businesses, but plenty for the gov't to p!ss away.
Treasury checks are safe until this "least path of resistance for profit" is broken. It will take 2 years, at least.
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