Saturday, December 13, 2008

Free Money for the U.S. Treasury

The talk of a potential bubble in U.S. Government debt continues to grow, and the chorus grows louder every day. Other bubbles, including both real estate and commodities, have demonstrated similar phenomena, frequently not long before those bubbles have popped and the manias collapsed.

From Bloomberg today:

"The rally in Treasuries that pushed yields on bills below zero percent this week is adding to concerns that the $5.3 trillion market for government debt is a bubble waiting to burst."
Click here for the full story.