To: Jim McMannis who wrote (131611 ) 2/5/2001 8:09:55 PM From: ursulaminar Read Replies (1) | Respond to The debt probably can not be paid off! A couple of weeks ago Alan Greenspan was testified before congress. During that testimony, on several occasions, he made the point that a good deal of the federal debt should simply be allowed to go to maturity. Why? Because, much of the U.S. debt is being held by investors who want the high long term yields which are being guaranteed by the U.S. bonds that they hold. And, because this yield is so important to them, they would only sell these bonds back to the federal government if they were paid a very high premium for their bonds. Think of this from the position of many 65+ year old retirees. They have a 1/2 million dollars or so worth of U.S. bonds of some sort which provide them with $30,000 - $35,000/year on top of their social security and other pensions. That is more then they need to live comfortably. So, why would they want to give up that security and start investing in a stock market which they do not understand and do not trust?????
