Greek Yields Foreshadow U.S. Rates!

I love the ads on radio about muni bonds. The announcer reads the fine print before the tout about tax free income. One of the risks is to capital if interest rates go up. Tyler Durden at Zero Hedge points out how Greek bonds have fallen in half. What started out as a 4.6% Greek long, treasury bond at par is now a bond trading at 50.56% of par and the current yield to new buyers is 9.7943%. Interest rates have gone up in Greece due to their financial shambles. The same thing will happen here. In my life time I’ve seen 13% Oregon munis issued at par. I’ve seen Oregon electric utilities bonds at 17% at par. Soon we will see U.S. Treasuries with 10% yields.

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