Reinko

Bond Expert: Historic Day Wraps

Now after this perfect weekend where Frannie was capable of hooking herself on the mouth of the US Treasury I can only say this:

Maturing Treasury coupon securities, or bonds, can only be replaced by new 'coupon securities'.

Most folks inside the USA do not understand how much house prices will decline further and so even more folks do not understand the future price tag on tax payers.

Yet replacing old bonds for new ones is well understood: If there is no other way for replacement it is called a 'Ponzi scheme'.

The USA folks are blessed because the Chinese, Japanese and Indian folks do not know what a so called 'Ponzi scheme' is.

Therefore US bonds will live forever, do you agree or disagree with me???

And what about Federal Agency debt? Will that joke seize to exist or will the Europeans cat copy that wisdom in the future decades?