Is the U.S. the Next Bear Stearns?

By: Dan Weil

The U.S. government is handling its finances just like Bear Stearns, paying for long-term liabilities with short-term funding, says Jason Trennert, chief investment strategist at Strategas Research Partners.

The difference is that the government prints its own currency. “But the private sector has shown that’s not a very good way of running a railroad,” he told WSJ.com video.

About 60 percent of the Treasury’s debt matures within three years. That begs the question of why the government isn’t issuing debt as long-term as it can, Trennert says. After all, some companies are looking at issuing 100-year bonds to lock in these low interest rates. (more)