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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!
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    Be empowered!
    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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