Zubon2 comments on Risk-Free Bonds Aren't - Less Wrong

15 Post author: Eliezer_Yudkowsky 22 June 2007 10:30PM

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Comment author: Zubon2 28 June 2007 04:13:09PM 0 points [-]

I'm with Stuart Armstrong: how do you hedge against a US government default? "End of the world" may be an exaggeration, but what investment is going to be in good shape if the US decides not to pay back the national debt? Everything takes a big hit. The risk is non-zero, but it practically unavoidable.

Or maybe there are investments completely insulated from that collapse. I can't claim global expertise.