Tuesday, August 03, 2010

The Least-Ugly Sister

Some opine that the value of T-Bonds reflects the strength of the US economy.

Maybe.

Or maybe the T-Bond is the least-ugly sister compared to all the others. What would you rather have? Greek IOU's?
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5 comments:

J. Strupp said...

Not sure who's saying that treasury strength is due to the strength of the U.S. economy right now.

It has everything to do with the U.S. being the world's largest economy and the world's reserve currency.

But again, instead of acknowledging this and using it to our advantage, we choose to compare our situation to Greece's which is not only misguided but counterproductive to employment and growth.

8/03/2010 11:05 AM
neomom said...

I wouldn't hang your hat on the US being the biggest economy and reserve currency all that much longer....

8/03/2010 10:09 PM
J. Strupp said...

It's a certainty that world can (and will) confidently "hang their hat on" for the forseeable future:

http://online.wsj.com/article/NA_WSJ_PUB:SB10001424052748704423204575016551460800026.html

8/03/2010 11:32 PM
J. Strupp said...

That didn't work. The link might be too long. I'll try again:


http://online.wsj.com/article/NA_WSJ_PUB:SB10001424052748704423204575016551460800026.html

8/03/2010 11:34 PM
J. Strupp said...

Eh didn't work.

In short, there's no chance that the U.S. economy will be overtaken by any other country in the world for the next 15 years.

Likewise, there's no viable replacement for the dollar as the world's reserve currency.

8/03/2010 11:54 PM

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