An excerpt from an e-mail to clients from Jonathan Lewis, chief investment officer at Samson Capital Advisors:
Top 5 List - Ways to Know You Might Be a Banana Republic
1. There is a flight from your T-bill market because the government might not be able to pay its debt.
2. Corporate debt looks more attractive than debt issued by the government.
3. The government can’t release data on the economy because the government workers who collect and distribute the data have been furloughed.
4. The leaders of the country have lost the ability to compromise and discuss important policy matters in an open, fact-based manner.
5. Important futures exchanges begin to aggressively haircut your government debt when it is used as collateral for futures contracts.
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