Just the fact that people are now talking about the need to mitigate the risk of US default means that Treasuries are losing their status as the benchmark for the risk-free rate. Too late, too late...
If I were a rating agency, I would have bumped the US down more than one notch the last time this was threatened. The mere fact that we could talk about it with a straight face should have been very worrisome.
Just the fact that people are now talking about the need to mitigate the risk of US default means that Treasuries are losing their status as the benchmark for the risk-free rate. Too late, too late...
If I were a rating agency, I would have bumped the US down more than one notch the last time this was threatened. The mere fact that we could talk about it with a straight face should have been very worrisome.
Well, S&P downgraded US debt the last time we went around that mulberry bush.
Bad things happened to S&P (and its owner McGraw Hill) after that.
Pointing out that the emperor is naked can be really bad for your health.