Danny Newton

Why Buy T-Bills Now?

Many city and county governments will be forced under law to invest their idle cash in government securities. Most of the time there is a two year limit except for retirement funds, which can invest in long term government bonds. In my state, the yield for the state retirement fund must be 7.5% to be actuarily stable. Pension losses are already equal to the period after the 911 terorist attck. It is almost a thousand dollars for everyone in the state. Only this time there is not terrorist and there is no assurance that the drop will be short term.