Quote:
Originally Posted by Apoco
Bingo (with the exception of the European market - they are probably in worse shape than we are)
An even more imminent concern is that S&P/Moody's could downgrade US Treasury Bonds from a AAA rating. Moody's has stated that unless there is clear evidence of the debt-ceiling issue being resolved they will downgrade US Gov't Bonds from AAA to AA. That would have huge impact on the governments ability to raise capital quickly and cheaply. To be fair - right now the yield is at historic lows (note: the price of the bond that people are willing to pay is inversely proportionate to the yield of the bond) meaning that demand is still high even with the speculation occuring. Maybe it won't have as big of an effect as "Chicken Littles" like me think it might.
Not to mention that then the world has to figure out what the RFRR (risk-free rate of return) is in place of the Treasury Bills...that will be interesting to see from a financial/scholarly point of view.
EDIT: To answer the OP's question more directly - Commodities are the safest bet if the EU and/or the US should happen to have a financial collapse that is worse than what they already have had.
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now i feel smart. this is what i get for reading wsj. So far i only have 1 year into business college. the rest in the army.
on another note. it really would affect the economy two fold(atleast). because not only do businesses and people no longer have actually/valuable money to buy things. Commodity prices go up during the collapse. so not only are you poor with a room full of hundreds, you cant buy food or anything else. it has the potential be a horrid domino affect.