Would you still invest in government bond?

United States
June 20, 2011 3:33pm CST
I knew on the beginning of the year, many financial magazines, and newspaper encourage people to invest more on stocks rather on bonds. Since the inflation rate is also on going this year, a stock might be a good bet. I knew some people still want to have government bonds, like municipal bonds, where the government issue those bond paper, and promise to pay you back on the mature date, plus the interest monthly. But, as you know, the city government and the state government, majority of them are broke. So, those bonds maybe meaningless when it comes to mature. The state government or the city government might not have that money to pay you back. Then what? So, from my personal opinion, it might not be a safe bet.
3 responses
@faisai (1140)
• Hong Kong
22 Jun 11
It depends on your confidence on the government. They are broke or in deep troubles with money. But will they just not payback the debt? I wonder. If they really don't payback, they can't raise new money to fund the daily activities. That would mean the public sector not adequately funded and result in disruption to services. The government simply has to payback its debt or the troubles that will come can be more disastrous.
@surekharathi (14134)
• India
21 Jun 11
No friend I am not investing Govt bond. Because I have no much more money for investing but if some money remains then I deposited in my bank. I spend my monthly payment for shopping, hoteling, mobile bill, petrol bill, gifts for family members etc.
@anklesmash (1416)
20 Jun 11
Im from the UK and have just bought an income bond from the the national savings and investments.It cost £500 and pays approximately 0.60 a month depending on the interest rate at the moment the interest is very low so my monthly income from the bond will almost certainly increase.Also my investment is guaranteed by the government and i can cash in my bond in at any time.