Saturday, March 27, 2010

Full Faith And Credit

Vox Day:

On a tangential note, consider the intriguing implications of the following comparison of interest rates:

4.78% 30-year Treasury Note
4.99% 30-year mortgage

In other words, Federal Debt is priced as being nearly as risky as a home mortgage in a market where a significant number of mortgages are underwater or in default.

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