In the News II

Quote: AZDuffman

The thing is it doesn't matter much as if the Treasury defaults everything else is worthless anyhow. Instead of defaulting they will inflate it away same as they did with debt from the WWII-Vitenam era.

That means it's more serious than an individual person's DTI percentage for a home mortgage.

Because the dollar and dollar assets depend on the solvency of the issuer.

If anything, the DTI for the government should be much more conservative than Freddie and Fannie.

Like Switzerland at 25%.

The issue seems to be the politicians that think having too much debt is a less important issue than something they want.

But if they wanted a home mortgage and they were over the lender limit, then no is the answer they'd receive.

They need to learn to say no.

Quote: DoubleGold

I'd like to see them buy newly issued USA Treasuries after the downgrade and put their money where their mouth is.

Treasuries are the safest investment anyone can make.

Current yields also make them the best investment anyone can make.

1 month to 1 year all yield around 5.4% city and state tax free.

This downgrade could help to drive up yields.

Quote: Tanko

Treasuries are the safest investment anyone can make.

Current yields also make them the best investment anyone can make.

1 month to 1 year all yield around 5.4% city and state tax free.

This downgrade could help to drive up yields.

In theory they are.


But depends on how much they like the dollar (liking the dollar means low DTI rate).

Because I'll switch if the DTI gets much higher.

When I switch currencies, the dollar's bid gets buckled.

And so will they.

I wonder if those young reddit traders bought AAPL at the top before earnings came out a little while ago.

They were trying to influence earning's euphoria.

It traded $7 higher before the numbers came out.



From what I could see, Japan's sales and iPad drops offset service growth.

It's important they hype these youngsters with AI discussion.

So they'll buy her higher.

Quote: DoubleGold

That means it's more serious than an individual person's DTI percentage for a home mortgage.

Because the dollar and dollar assets depend on the solvency of the issuer.

If anything, the DTI for the government should be much more conservative than Freddie and Fannie.

DTI is just one of the 5Cs. The feds have lots of collateral. How much is the oil on ANWR alone worth? Remember, Andrew Jackson paid off all but about $50,000 of the national debt selling land.

Quote: AZDuffman

DTI is just one of the 5Cs. The feds have lots of collateral. How much is the oil on ANWR alone worth? Remember, Andrew Jackson paid off all but about $50,000 of the national debt selling land.

I don't know what the market value of that oil is, but I'd say less than a trillion.

I say swap Alaska for $32T in debt and call it even.

If it costs $1T per year just to service the debt, it won't be long before it doubles.

So the sooner the better before she gets too large.

Quote: DoubleGold

I don't know what the market value of that oil is, but I'd say less than a trillion.

I say swap Alaska for $32T in debt and call it even.

The oil is just one example. But I repeat, worry not, they will inflate it away. $1000 for a Big Mac, but no default.