What a Flight From Treasuries Would Look Like

As I wrote yesterday, I do not believe there will be a default by the U.S. Treasury.

If there is a default, however, it would be a voluntary event somewhat similar to residential mortgagors with negative equity strategically defaulting on their mortgages. In that case, borrowers decide to not pay interest due to their creditors, even though they have the financial capacity to do so. This is generally not a good idea, and it is viewed far more critically by future potential lenders than a default resulting from an actual financial inability to meet debt obligations....602 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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