At Federal Reserve banks across the nation last week, thousands of people who normally keep their money in savings accounts stood in long lines to buy U.S. Treasury notes (minimum purchase: $5,000) yielding average interest of 8.1% that is exempt from state and local taxes. Such eagerness to buy is understandable: the notes offer both complete safety of principal and an interest return far above the 5ΒΌ% maximum currently paid on passbook savings at a bank or savings and loan. But, for involved reasons, the popular fascination with Treasury notes raises a...
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