Seeking Alpha

The U.S. will almost assuredly not miss any coupon payments on its debt, but that doesn't mean...

The U.S. will almost assuredly not miss any coupon payments on its debt, but that doesn't mean it won't default, writes Jeff Rubin. Japanese insurers suffered huge losses in the 70s, as the dollar fell 40% vs. the yen. They'd have been better off in lower-yielding JGBs. China might expect the same.
From other sites
Comments (2)
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Simplistic analysis that assumes the Japanese and Chinese hold only naked long positions on UST's. Very well could also be short the USD at the same time as a hedge.

     

    Typical mainstream journalism with only partial information.
    20 Jul 2011, 12:37 PM Reply Like
  • Duude
    , contributor
    Comments (3399) | Send Message
     
    If we use the stability of the dollar as criteria in determining a default, we've already defaulted. Using that same line of thinking, if we buy a stock and it goes down for even a day below where we bought it only to rise thereafter, we've lost money. Yeah, this is a pretty lame article.
    20 Jul 2011, 01:42 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs