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> You can choose various flavors of bonds, and various maturities, but they are all fundamentally the same. It appears to me that you've just equated a US Trea
by pjmorris 11y ago
> You can choose various flavors of bonds, and various maturities, but they are all fundamentally the same.
It appears to me that you've just equated a US Treasury bond with a private label subprime RMBS. Is that a fair assessment? If so, how strongly do you feel about that equivalence? I see the private label RMBS's as less of a 'real thing'.
- toomuchtodo 11y agoIsn't a treasury bond primarily funding social security, medicare, and defense spending (the three biggest US budget non-discretionary spending categories)?
- animefan 11y agoIn the context of that sentence, I was referring to the bonds bought by open market operations, which are primarily US government bonds and would not include private label subprime RMBSs. The kind of close-to-risk-free bonds bought in open market operations are all fundamentally the same because they simply move money from one point in time to another.