Another of my pet peeves. Bonds are sacred. These fine people (ha) bought these bonds to fund their retirements of golf and pederasty. They need their money...blah...blah....blah.
First things first, when you buy a bond you are loaning an entity money. It is a business decision, just like when Louie does it down at the docks. But, here is the kicker, when Louie lends money, he has the good sense to hire Guido the legbreaker to ensure prompt repayment.
Idiot individuals who buy bonds are loaning money to the big boys. The big boys have the morals of an alley cat. So, in toto, if you buy a bond from a corporation you are lending money to the most rapacious group of people in our society. If you lend money to the government, outside of a war bond, you are loaning money to an extremely eccentric uncle with a poor prior history.
So, we can safely say that any individual that holds bonds is less than sharp, and, while not deserving a schooling, shouldn't feel an immense set of moral outrage.
But the main holders of bonds are corporations and other countries. Well fuck them, haircuts for all.
2 comments:
Which bonds are you talking about? Treasuries, Corporate, Municipal, etc?
If you are country that likes to carry a lot of debt (like Greece) and need to keep rolling over you debt (like us) than you don't want to mess up the bond holders because your carrying costs go through the roof.
Obviously there can be a one time big pay off by defaulting (see Harrisburg, PA), but most defaulter are usually still in deficit funding and the lack of new funding kills them (see Argentina).
Fuck Yeah! Uh, what's the context? I don't understand why you have an issue with retirees investing in bonds. CDs don't pay shit; nor do savings accounts. The stock market is an insane gamble. Bonds are doing pretty good. Uh, not that I know that personally, right. It's just something I read.
Otherwise, awesome post! See, I can't be a conservative, because I don't care how other people choose to live. “Do not judge, or you too will be judged” (Matthew 7:1).
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