BONDS ARE NOT A SAFE HAVEN FOR INVESTORS. Although bonds sold to investors are unsecured and second in line to pursue claims when a firm goes bankrupt behind secured lenders, YIELDS ARE CURRENTLY WAY OUT OF LINE WITH THEIR RISKS. There are many obvious reasons, but here’s seven of them:

by toxicmarkets1

#7. Financial Market Regulators have been in Wall Street’s pocket for longer than anyone can remember.

www.npr.org/templates/story/story.php?storyId=124208012

#6. Financial Behemoth Bankruptcies ( i.e. Lehman Bros, Bear Stearns, LTCM, Kidder, AIG)

libertystreeteconomics.newyorkfed.org/2019/01/creditor-recovery-in-lehmans-bankruptcy.html

#5. US Treasuries and the current debt levels relative to our gross national product.

en.wikipedia.org/wiki/National_debt_of_the_United_States

#4. The incompetence of our current administration.

www.washingtonpost.com/blogs/comic-riffs/post/the-debt-debate-six-top-cartoons-that-raise-the-comedy-ceiling/2011/08/01/gIQANx6vpI_blog.html

#3. You can NEVER underestimate the incompetence, greed and arrogance of financial market executives.

www.washingtonpost.com/news/powerpost/paloma/the-finance-202/2018/05/10/the-finance-202-those-people-are-getting-paid-cohen-s-side-work-highlights-how-trump-allies-are-refilling-swamp/5af370fa30fb04258879942d/

www.ibtimes.com/what-fiduciary-rule-who-wants-stop-it-firms-spent-more-3m-lobbying-first-quarter-2017-2526524

#2. It’s happened before.

www.theatlantic.com/business/archive/2013/01/heres-what-happened-the-last-time-the-us-defaulted-on-its-debt/267205/

#1. This is the President of the United States of America and this isn’t his first rodeo.

www.nytimes.com/2016/06/12/nyregion/donald-trump-atlantic-city.html

www.forbes.com/sites/timworstall/2016/05/07/donald-trumps-glorious-threat-to-default-on-the-national-debt-is-just-the-conventional-wisdom/#8a63e34a367a

 

Disclaimer: This is a guest post and it doesn’t represent the views of IWB.