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It looks like the IMF has finally gotten the memo, declaring in a blog post that government...

It looks like the IMF has finally gotten the memo, declaring in a blog post that government bonds are not the risk-free asset they once were. The main implication being that sovereign paper now assumes the characteristics of a credit instrument - the price mainly reflects probability of default.
Comments (9)
  • Here is a secret....Government bonds have always been risky....
    24 Mar 2011, 06:07 PM Reply Like
  • Well here it is kids! If this doesn't make the hair on the back of your neck stand up, congratulations you have ice water for blood!
    Tonight's Beck is must see, it couldn't have been written by a movie writer? Tom Clancy? Watch Beck! Feel empowered!
    Be empowered!
    Jerry
    24 Mar 2011, 06:10 PM Reply Like
  • and when is Moody┬┤s or anyone going to downgrade the USA....tic tic tic..
    24 Mar 2011, 06:44 PM Reply Like
  • Moody's will downgrade the US approximately 12 months AFTER it was painfully apparent they should have.
    24 Mar 2011, 07:14 PM Reply Like
  • Has 12 months passed yet?
    24 Mar 2011, 09:48 PM Reply Like
  • Moody's will downgrade Moody's before they do that.
    24 Mar 2011, 11:15 PM Reply Like
  • When the memo was sent? We need commision to investigate. Just kidding goverment... Please do not form any new agency.
    24 Mar 2011, 08:01 PM Reply Like
  • May be I should not kid about this. Goverment does not understand the joke.
    24 Mar 2011, 08:03 PM Reply Like
  • It's like the ratings agencies, although whatever the IMF says should be taken seriously. They're polite to a (de)fault. When they say this, it's reminding us of the obvious. But supposedly sophisticated traders want to ignore it.

     

    But I guess we no longer have to take seriously the "drink-yourself-sober" school of Princeton witch doctors and other latter-day preachers of the Keynesian snake oil.

     

    Keynes helped to found the IMF. I wonder what he would think of what it and, more to the point, his self-proclaimed followers have become.
    24 Mar 2011, 10:57 PM Reply Like
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