UnThreaded | Threaded | Whole Thread (19) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: markr33 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35387  
Subject: Re: CD or treasury bill ? Date: 6/20/2006 12:55 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Obviously, I'm a huge fan of TreasuryDirect.

I've also been quite pleased with TD. I've also been surprised that a component of the Federal government can be so efficient and work so well. It is definitely the exception rather than the rule.

It's a shame that the government is borrowing the huge sums of money it is, and the interest rates we are being paid are, in some sense, coming out of our own pockets or our children's children's pockets.

Interestingly, I've been noticing that at least on th short-term issues, the new issues are smaller than the old ones they are refunding! Maybe our Federal government is moving more of the debt out longer (which is what I would advcate right now - long term fixed rate debt to be eaten up by inflation).

But there are good arguments to be made for having a country's borrowings come from the savings of its own citizens rather than foreign capital. That's straining the notion of patriotism a bit (or the notion of doing well by doing good). But I'd rather keep those dollars here in this country rather than pay them out to overseas investors.

Not necessarily. It depends on what else those dollars could be doing. If they can be invested in the economy at large and yield more than 5.X% consistently, then it is definitely better to allow foreigners to finance the debt, while we invest in our businesses at a higher overall yield.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (19) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Berkshire Hathaway

IBM: Is Buffett Wrong, or Brilliant?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement