I am keeping my municipal bonds.
I have a significant postion in municipal bonds too. This whole "default on the fed debt" thing has me thinking (always dangerous) regarding that. When the feds default, will they be opening the door for the states and municipalities to be more prone to default? Leadership by example?
We're invested per asset allocation in a very low cost bond index fund and we intend to stay there.
You're missing the bigger picture. If we hit the debt ceiling and start defaulting on our obligations, our credit rating tanks. Instantly. Then all the trillions of dollars we've borrowed will become MUCH MUCH more expensive to refinance when the notes come due. It would cause a massive and very rapid increase in the nation's interest expenses -- which is already $0.5 Trillion/yr at our current AAA rating. That would NOT be good.Most of the dire predictions of a default are political posturing. US debt payments have first priority. The major hit will be to government workers that will theoretically become unemployed.
I thought this thread was "Who is getting out of bounds?" I am so disappointed.
Ha
I thought this thread was "Who is getting out of bounds?" I am so disappointed.
Ha
I thought it had something to do with bondage ...I thought this thread was "Who is getting out of bounds?" I am so disappointed.
Ha