by Gary Christenson
- Bonds look like a bubble in search of a pin. What if global bonds are revalued lower to account for the following?
- Probability of repayment in a currency that will maintain its purchasing power for the lifetime of the bond.
- Probability of responsible fiscal management by the governments of the bond issuing countries.
- Probability of repayment without rolling over those bonds by creating EVEN MORE UNPAYABLE
- Actual positive yield.
From Alasdair MacLeod: The Eurozone is the greatest danger.
“Money that is invested in bonds and deposited in banks may already be on the way to money-heaven, without complacent investors and depositors realizing it.”