How safe can you be?

Sep 06, 2003 0 Replies

How safe can you be?



United states Treasuries are currently paying 1, 2, 3, 4% based on term. They are considered perfectly safe due to guarantee of payment, low currency risk, and low inflation risk. Hence 1%.



California Bonds are subsatantially riskier. They are paying upwards of



5% and more.

Commercial bonds even higher.



Junk bonds higher still.



B/C paper mortgages higher yet nearing the legal limits.



The reason a treasury note only pays 1% a YEAR is the certainty of repayment is near perfect. The time of payment is very near and the risk is near nill.



Model rocketry has a safety expectation of near perfect, and a hazard approaching nill, especially as compared to virtually any other HUMAN ENDEAVOR.



Mark Bundick probably apperciated the analogy used in this post and Trip Barber can think of ways to present this data in a report with statistical significance, possibly using governmentally collected data.



Jerry


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