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Strategies & Market Trends : Classic TA Workplace

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To: velociraptor_ who wrote (19007)11/1/2001 6:31:40 PM
From: sandeep  Read Replies (2) of 209892
 
Why do you think that lending money to uncle sam for 10 years is riskier than equities (or not worth the risk)? After all, one can lose a lot of money in the equities than by lending to the most powerful nation on earth.

When the 30 year bond was floated in 1977 (I think), the state of the country didn't look too good, now it does. SO, what's wrong with eliminating the instrument if it doesn't make sense paying higher interest rates? Don't you and I do that all the time?
Granted, too much liquidity is being pumped in right now. However, these are risky times, so, a short term fix is ok. Bailing out govt can be a good thing IFF proper safeguards are insisted in return. Just imho.
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