It’s Time to Dump U.S. Treasury Bonds – Again
December 06, 2011 at 14:01 PM EST
Potential double-top forming at the long-term significant resistance level at its late 2008 high First let’s make sure we understand the basics of bonds. Bonds are a form of debt. When a company or a government needs to borrow money it can borrow from banks and pay interest on the loan, or it can borrow from investors by issuing bonds and paying interest on the bonds. One advantage of bonds to the borrower is that a bank will usually require payments on the principle of the loan in addition to the interest, so that the loan gradually gets paid off. Bonds allow the borrower to only pay the interest while having the use of the entire . . . → Read More: It’s Time to Dump U.S. Treasury Bonds – Again