Thursday, July 9, 2015

Laurence Kotlikoff: U S Treasury Bonds One of the Riskiest Securities in the World, Financial System Will Collapse Just a Matter of When......

Laurence Kotlikoff: U S Treasury Bonds One of the Riskiest Securities in the World, Financial System Will Collapse Just a Matter of When

Where can you get a safe investment? 

Boston University Economics Professor Laurence Kotlikoff says, forget U.S. Treasury bonds. "I think they are one of the riskiest securities in the world because interest rates are likely to go up. I think the Fed is going to have to keep printing money because Congress isn't paying our bills, and that's going to lead to inflation eventually. So, I think long term Treasuries are extremely risky and they can drop 5%, 10% or 20% overnight. That could put my bank that was viewed as perfectly safe today–out of business. So, we could have inflation take off, and interest rates go up. We could have banks fail, and that could lead to runs on other banks. That's the scenario," says Professor Kotlikoff.

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