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Politics : Al Gore vs George Bush: the moderate's perspective

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To: pezz who wrote (5285)11/9/2000 1:00:05 PM
From: Enam Luf  Read Replies (1) of 10042
 
Actually,...

repayment of the debt could cause big problems for the markets. All that corporate debt is priced off the "risk free" rate, estimated inflation, and corporate risk. The risk free rate is derived from government bonds. Without a liquid government bond market (free of the effects of government purchases eating up supply) pricing bonds becomes very difficult.

This is not to say that is isn't a good idea to repay the debt, but it is certainly not without risks to the capital markets.
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