fresinha12 wrote:
that is assuming there is no bubble bursting in the bond markets..which if you know a thing or two is the next big story...
Also their T-bond holdings are going to devalue as treasury starts printing the paper to back all its commitments to wall street and now Detroit..
My 2 cents.. arrange your own financing, come Aug 2009, I dont think you can count on uncle harvard to loan you anything..
Yes, everything could go down but then Harvard is better off comparing to everyone else. If we have an Armageddon scenario with hyper inflation or deflation; it does not look good for anyone. Though others schools with their comparatively puny endowment will feel the brunt of it. Who knows, may be their cash is all in TIPS; hence no need to worry about inflation, that would be smart.
Hummmm, in a bad scenerio where Harvard would not be able to guarantee or extend loans, I doubt that any bank would loan us anything and I don't know how much our portfolio would be worth... lol Any one has a solution ??