David Roskoph

Another Look at Treasury/Corporate Bond Spreads and Risk Premium

The assumption that US Treasuries are "risk free" will be out the window if our Treasury gets into the business of underwriting bad mortgages. That spread will lose its reference and need to be applied to a more responsible Central Bank's fiat. We are willingly demoting ourselves in the vain delusion that creative financing somehow equals real growth. Our Central Bank seems intent to follow every other failure that chose fiat over discipline.