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If the US could make excuses for not paying off its debts, US Treasury bonds wouldn't have a triple AAA rating.
by IsaacL 17y ago
If the US could make excuses for not paying off its debts, US Treasury bonds wouldn't have a triple AAA rating.
- Locke1689 17y agoUS Treasury bonds are not rated.
- rdtsc 17y agoBut a country is.
- miked 17y agoYes they are, and all three major bond rating agencies have recently publicly stated that treasuries are in danger of being downrated due to the massive increase in federal debt.
- Locke1689 17y agoActually no, they are not. Rdtsc is correct that sovereigns are rated, which is why I upvoted him.
- daniel-cussen 17y agoA AAA rating from US based agencies. Moody's talked about downgrading the US and Geithner said "That will never happen in this country."
- jrockway 17y agoI don't really doubt the ability of the US government to pay back my loan to them. The economy would have to be about 1000x worse before I would start worrying about that. On the other hand, inflation could increase faster than the yields on those bonds, in which case you are out of luck. (And some yield curves look pretty strange these days, although not the USD yield curve.)