[SusanJBear]

what would I know about the bond market.)

Washington Post article on Treasury wanting to raise the debt ceiling again.

Treasury Says U.S. Could Default

(As per Martin Weiss in March: In June 2002, it was forecast that current money would last until September 2003. The forecasters were 8 months and $500 billion short.)

[theUbend]

The treasury cannot default. The implications don't bear consideration. The country would be forced to devalue its debt and offer an approximte scrip.

Increasingly the corporates are becoming the benchmark for the capital mrkets. But a massive issue by the USA would create a downdraft in all but the very best issuers, and lead to another re-appraisal of counterprty risk, especially by the rapackaging guys like the GSE's, JPM etc, nd by default, their own portfolios.

[SusanJBear]

I realize that, but that doesn't stop the Treasury from threatening, does it?

The new book by Martin Weiss gives a very detailed portrayal of the Treasury bond market in the early 1980's, and how Uncle Sam worries about his own sorry ass above all else, making sure the president, congress, ad nauseum all get paid, before even giving a moment of consideration to bailing out the stock market or anybody else.

[Everybear]

Considering the potential upside left, US bonds are still a lot cheaper than Japanese bonds, think of it that way...