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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Ilaine who wrote (6358)7/28/2001 6:57:30 PM
From: KyrosL  Read Replies (1) of 74559
 
Yes, the repos have some risk. But if there are widespread repo defaults, it would mean that the US banking system is dead, and your bank will probably freeze your T-bill account. To protect against such eventuality you buy guns and freeze-dried food, not Treasuries, and not even gold.

Such an eventuality is impossible, IMO, barring planet-destroying events.
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