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Strategies & Market Trends : The coming US dollar crisis

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To: axial who wrote (20933)6/23/2009 12:41:03 PM
From: Archie Meeties  Read Replies (1) of 71455
 
TRIG, debate about the size of the debt obscures a more critical question, which can be summarized like this;

"What is the ROI on the debt?"

Given that the US government has historically had extremely low borrowing costs (and still does), there are plenty of examples of when government debt yields a positive ROI.

The resolution trust following the bailout of the S&L's comes to mind. Great returns, a good use of debt.

As I pointed out on the BDBBR thread, the ROI on the first tranche of the TARP funds is positive.

I suspect much of the Australian ROI on their debt is strongly positive, given that they've used it to develop infrastructure.
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