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From: koch@brahms.DEC (Kevin Koch LTN1-2/B17 DTN229-6274)
Newsgroups: net.invest
Subject: Questions about implications of World Banking Crisis
Message-ID: <2969@decwrl.UUCP>
Date: Mon, 1-Jul-85 09:02:51 EDT
Article-I.D.: decwrl.2969
Posted: Mon Jul  1 09:02:51 1985
Date-Received: Fri, 5-Jul-85 03:06:01 EDT
Sender: daemon@decwrl.UUCP
Organization: DEC Engineering Network
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     I found reading about how a banking collapse would work and how 
and why the government would react very informative.  For those who 
contributed to that, I have a couple of questions ... 

     How will the pile of debt outstanding to Latin America that will 
never be paid off affect the banking system?

     Where is the best place to have your money in the midst of a WBC? 
Currently I have most of my money in long term municipal bonds, which 
pay double the rate of treasuries, when you consider tax effects.  
Would munis continue to be safe, or would the only sure protection 
come from treasury obligations?  If minuis are paying twice as much as
Tbills, somehow that must indicate greater risk. 
---------------------------------------------------------------------------
Kevin Koch  (Koch is it!)
...decwrl!dec-rhea!dec-handel!koch
koch%handel.dec@decwrl.arpa