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To: GOPJ

Here’s what would happen:

The interest rate at which investors would be will ing to buy our bonds would go up. Perhaps 4 to 5% or more.

Alternatively, the cost of the bond would be discounted to reward risk taking behavior.

Example:

East St. Louis offered a 30 year bond at 45 with 7% interest.

So for every 450 bucks you sent them they would give you a 30 year 1,000 buck bond. You were paid 7% on the 1,000 face value.

I doubt that they were ever paid off. This was in the 70s.


96 posted on 05/06/2016 7:54:23 AM PDT by buffaloguy
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To: buffaloguy

When we start to ‘default’ (if we stay on the same ‘greek’ path we’re on now) it would be MUCH worse than what you’ve outlined. Besides, I suspect you’re overstating a tad...


98 posted on 05/06/2016 8:07:24 AM PDT by GOPJ (Imagine the shrieking MSM outrage if Trump supporters had tried to flip a car... David French)
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