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.

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

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

#4. The incompetence of our current administration.

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

#2. It’s happened before.

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


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