Comments on: Safe. Stable. Simple. http://crawlingroad.com/blog/2010/03/18/safe-stable-simple/ The Permanent Portfolio, Investing, Finance and Random Thoughts. Wed, 02 May 2012 07:34:52 +0000 hourly 1 http://wordpress.org/?v= By: craigr http://crawlingroad.com/blog/2010/03/18/safe-stable-simple/#comment-868 craigr Wed, 24 Mar 2010 00:20:51 +0000 http://crawlingroad.com/blog/?p=3134#comment-868 We don't know how the markets could react to that situation. However I do think that it will offer a strong slap across the face to the US Govt. before it goes broke. For one, costs of borrowing could go through the roof and that could curb spending and bring things back in line. We just don't know. LT Bonds would be hurt, yes. ST/Cash would probably tread water. Gold would sky rocket. Stocks? Who knows? But probably will be fine in the long run. Problem is, other countries are doing the same thing. It's just that in the US we are more aware of what goes on because we live here. There aren't many places to put money where it isn't at risk of inflation due to govt. spending. We don’t know how the markets could react to that situation. However I do think that it will offer a strong slap across the face to the US Govt. before it goes broke. For one, costs of borrowing could go through the roof and that could curb spending and bring things back in line. We just don’t know. LT Bonds would be hurt, yes. ST/Cash would probably tread water. Gold would sky rocket. Stocks? Who knows? But probably will be fine in the long run.

Problem is, other countries are doing the same thing. It’s just that in the US we are more aware of what goes on because we live here. There aren’t many places to put money where it isn’t at risk of inflation due to govt. spending.

]]> By: Jim http://crawlingroad.com/blog/2010/03/18/safe-stable-simple/#comment-867 Jim Tue, 23 Mar 2010 22:15:15 +0000 http://crawlingroad.com/blog/?p=3134#comment-867 Just thought how safe do you think the PP is in the current enviorment with 50% in treasuries? It seems only a matter of time before treasuries get downgraded from AAA and US is declared bankrupt. Just thought how safe do you think the PP is in the current enviorment with 50% in treasuries? It seems only a matter of time before treasuries get downgraded from AAA and US is declared bankrupt.

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