Business: Bad News Bonds

Washington's new sales pitch

For three generations, U.S. Savings Bonds have been favored gifts for babies, college grads and newlyweds. In recent years, however, that so-called share of America has been a bum investment. Government bonds are safe, but the maximum interest of 7% has often been only half of that earned on almost equally secure bank savings certificates.

Now the Gray Panthers, a senior citizens lobby, has forced Washington to admit that bonds are not a wise way to make money. Last year the group complained to the Federal Trade Commission that the Government was misleading investors, who did not realize that...

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