Speculative Odds That The Bond Market Will Collapse?

[willyback]

When will the world start to question America's ability to make good on its debt? Could this unrealistic demand for government bonds be the next debt bubble to trigger a systemic credit event?

Odds?

[SBR_John]

Pretty long odds on US bonds defaulting, I'd say in the 1 in 500 range. But a whole lot of BBB and lower that is in real trouble.

[willyback]

Maybe the US could securitize all the debt it issued to third-world countries (using their agricultural and industrial assets as collateral) to raise immediate capital needed to buyout foreign US bond holders?

[willyback]

1 in 500 sounds about right.

[Data]

I think the odds are higher than I would want them to be. If it comes to worst, the US is going to default (Madoff scenario) and the worthless green buck is going to be replaced with Amero tying up North-American bond and sending big FU to Asian and European creditors. Come to think of it, this is probably a better scenario for the US considering all the other options at hand.