Replies to post #89644 on Biotech Values

[DewDiligence]

Respectfully, I don’t think the market is right about the relative default risks of companies and countries in the examples cited in the WSJ article; rather, this is IMO a case of inefficient pricing due in part to low trading liquidity.

[exwannabe]

OT Medchal, wrt US debt

The US debt will be considered risk free from a default perspective as long as it is denominated only in US dollars. That's just one of those facts. Worst case is the Fed just uses it's magic checkbook.

It is true that if the US starts having to monetize the debt, the dollar would become inflated and thus the value of the debt would decrease, but we were talking defaults and credit ratings, not exchange rates.