Thumb of Michigan | Bill Moyer - 7/11/2011 22:00
Physical bonds to maturity are possibly a good thing if you can keep our government from zeroing you bond as they give the company to the labor unions. Then you would lose money no matter what you thought. Just ask Chrysler, and GMC bond holders from 2 years ago!
That is so true, Bill. I was lucky, we had Ford at the time. And it was luck, not management for the most part. We'd owned GM in the past, and had some bonds mature a couple of years before the great bond robbery. The proceeds from that bought Ford. I have a few neighbors as well as some relatives not so lucky. Its a damn shame when our government can allow the theft of a supposedly safer investmant from senior citizens. Well, everyone else who held them as well, but the ones really stinging here are the retirees who didn't want the risk of stock, so they bought bonds.
Thats excellant advice for sure, though- the lesson we learned was that it pays to be overly analytical about some of the bonds in particular. About the time that the GM/Chrysler debacle was happening, we owned Cat Financial as well. Probabley didn't need to worry looking back, but Cat in general hasn't been known to have a real good relationship with labor. |
Should a person go to bonds. Sorry fixed.
