Anyone Short US Treasuries?Submitted by kevink on Thu, 04/12/2012 - 00:39
I'm not really sure how that works but it sure seems like there's nowhere for the prices of treasuries to go but down (inverse to interest rates that will eventually rise dramatically like they have in Greece).
I'm just wondering if you think this is the kind of investment that you'd actually see the pay off for or would there be a default and so you'd lose even though you correctly predicted the direction of the trade.
I'm also wondering if there would be a default whether it would be specific to US citizens. Basically I'm wondering if there would be a way to remove the default risk by shorting treasuries but doing so in another country (e.g. in a foreign stock exchange).
I apologize if my questions don't make sense since I'm not really sure about the risks associated w/ shorting treasuries.