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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: russwinter who wrote (63276)6/10/2006 6:33:53 PM
From: shades  Read Replies (2) of 110194
 
WSJ: Treasuries Not Inherently 'Riskless'?

socialize.morningstar.com

Today's WSJ (pg C6) has an article about S&P speculating that the US Government credit rating could be downgraded from AAA in 2012 reaching A in 2015 and BBB in 2020 if current government budget trends continue.

What struck me, though, was the notion that Treasuries are not inherently / automatically / metaphysically "riskless", though that's often how they're treated -- i.e. the U.S. Government will honor its debts as long as there's life on Planet Earth.

Rather, "riskless"-ness is an assessment / fact subject to continual reassessment.

In 2020 something other than US Treasuries could be the "riskless" benchmark for investing.

Thoughts?
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