When you say you are "weighted in FDIC- insured cash equivalent securities", aren't you saying your in money market funds that hold short term US treasuries? If yes, wouldnt those funds experience a short term liquidity problem in the event of a default? If yes, how is that better than holding one month treasuries directly?
You stated “....the market is saying there is a high chance that the 3-month USTs will default.” Is this because market participants are selling off 3 month T-bills, thus interest rates rise?
And if so, who are selling the 3 month T-bills?...the US?...other nation states?...fund managers?
Hi James great article as always . Can you provide some names of the Gold backed ETFs you’d recommend for me to research further . I’m already in Real Estate and BTC since 2016.
Debt Ceilings and Is The US About to Default?
James,
When you say you are "weighted in FDIC- insured cash equivalent securities", aren't you saying your in money market funds that hold short term US treasuries? If yes, wouldnt those funds experience a short term liquidity problem in the event of a default? If yes, how is that better than holding one month treasuries directly?
Nothing is safe. Let’s just hope the commercial banks don’t default or more bank runs don’t occur. Could get 1930s nasty
Thanks James, as always!
You stated “....the market is saying there is a high chance that the 3-month USTs will default.” Is this because market participants are selling off 3 month T-bills, thus interest rates rise?
And if so, who are selling the 3 month T-bills?...the US?...other nation states?...fund managers?
Thanks James, great explainer..
Hi James great article as always . Can you provide some names of the Gold backed ETFs you’d recommend for me to research further . I’m already in Real Estate and BTC since 2016.