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Originally Posted by JB3
my opinion is that the answer is no. I believe that sooner or later, we are facing a massive default on government debts and the worst economic disaster in recorded history.
For me the tough decision has been one where when do I decide that money I might have in a municipal bond for an airport or something similar will now become money that I probably won't get back? I have a few bonds like this, and unloading them early (some are 30 year bonds) will have me taking a loss, but not unloading them means I stand to risk losing all of the money invested eventually.
Then at that point, the money will become worthless anyway, so how do I preserve any wealth or comfort ive managed to accumulate If I know eventually the dollar will become a good source of toilet paper? This is all super negative thinking, but regardless of political affiliation, neither party has shown the slightest desire to actually tackle the massive debt of this nation. And every hour, the US government spends millions it doesn't have.
People say that a massive default is never going to happen and that things are improving, but in 1970 when the US was the largest creditor in the world, the same people would have balked at the notion that in 2013 the US would be the largest debtor in the world.
Alarming thoughts
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You should look into what happens to bond holders for airports and the such as some municipalities are considering and going through with leasing out those assets so the politicians can buy immediate votes and enrich their friends, it is just keeping them up nights figuring how to get that money today with out any regard to how are they going to replace that income next year. Who gets paid first unknown bond holders or those connected who stand to profit from that type of pilfering answer that. Just remember the supposedly secured bond holders of Chrysler and GM debt got a royal shafting so the politically connected and the unions could fill their pockets.