“Usually, when investors are willing to lend to companies at a lower yield than the government, it’s because the country faces financial armageddon and the government default risk is rising. Two pristine-rated bonds from Microsoft that trade at lower yields than equivalent Treasurys tell us something different, though: Demand for corporate bonds is running superhot.”
Narrator: This time wasn’t different. The government was bankrupt.
“In fact, if we stay on the same fiscal path, we will soon have the inequality of Brazil with the debt of Japan and the money printing of Zimbabwe.”
- James Lavish