Financial Armageddon
Written on Jul 14th, 2011
We live in interesting times. The United States is only a few weeks away from what potentially could be one of the largest defaults in world history. Given how the Republicans do not want to increase taxes and that the Democrats do not want to decrease spending, the only machinery that can prevent this default is currently seized up. Obama was so upset the other day during negotiations that he just up and left. Moodys once again threatened to lower the outlook on US treasuries. Given that the US is on the verge of a default, they are a little late to the game, but even so it’s also a rather historic negative outlook on the United States. Interest rates are near an all time low, which means any movement in the upward direction will hurt bond prices. That means that other than short term bonds, most bonds are extremely […]
