mcmc

Paraguay Wrote:
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> It is still C. Guaranteeing principal and
> interest of a high quality sovereign still ok even
> given the horrible climate. Maybe the book gets
> edited in the coming years. Bunds and tbonds are
> to be considered default free.


I guess you understand my thought pattern. I might as well just post my thoughts right away. The US will said to be in a "technical default" is the debt hits $14 trillion. The US is a sovereign entity just like Greece.

If Libya had treasury securities (I think they do) I doubt that they could honor it now. If some kind of unexpected disaster happens in the US, there is a chance of default. The CFAI says that it is unethical to give any form of investment guarantee; so just because the US has guaranteed its treasuries does it mean we can re-interpret the standards based on this?