Government bonds are perhaps more popular now than they have ever been. With so much uncertainty in the market, it is conceivable to believe that government treasuries are among the most long-lasting of all the financial assets.

However, is it not conceivable to believe that perhaps government bonds are not quite as profitable as many people might think? After all, you hear all kinds of stories… government agencies digging into reserves, government aid drying up, 911 funds being utilized for other things, and even the cancellation of F-22 fighter planes so that funds can be transferred to other security needs.

It does indeed seem that faith in the government as a secure financial entity is shaken. But is this really grounded in fact? Maybe to a point, but the truth is not really as grim as many people would make it out to be. It is true that the U.S. is just now coming out of a huge recession, but the government is also getting back on top of things. There is a lot of confidence right now that the U.S. Government can indeed pull through these financial difficulties, and can come out on top of a shaky situation yet again.

And so, it seems that government bonds are perhaps not slipping as low on the totem pole as the rest of the market. So for those of you who believe that there is still security in government securities, it seems that you are pretty much right. There is no sign of the U.S. government collapsing to the point where it’s securities are worthless. Are rough times coming up? Yes. But we have been seeing rough times for a year and a half now… and government securities are still going strong.