Treasurys, the Endangered Species

摘要

Flush times for the U.S. government mean the demise of an old and reliable friend to investors: Treasury securities. The Clinton Administration projects federal debt will be eliminated by 2012. You might be skeptical of the date-it hinges on the assumption that the next 12 years will be recession-free-but the eventual outcome now seems inevitable. Laying pessimism aside for a moment, there certainly are a lot of good points to a federal coffer brimming over. No more crowding out of corporate borrowers. Plenty of funds available for a tax cut. Less worry about finding the money to maintain Social Security's solvency.