I double the motion. I don't subscribe to the WSJ, so I can't access their online archives.

But I kind of doubt (I hope) the Treasury will change the rules just because of this article. Maybe 1% of the transactions that pass through their website are people just buying bonds for whatever purpose they discussed. There is nothing illegal or immoral doing that. In fact, I have done the same to the tune of $18,000 in EE and I bonds this year. Money that I would probably not have invested in savings bonds otherwise, so it's more money for the Treasury than if I couldn't buy bonds via credit cards.

The timing of purchasing of bonds with a credit card at the end of the month to earn interest from the first, they (the Treasury) fully point out on their website, plus posting their transaction limits.

Also, if one is "churning" bonds, there is a cost involved. That is you lose three months interest. If you cash the bonds six months after holding them, you have lost half your interest, which the Treasury gets to keep. So I don't see how churning can be compared to "plundering the Treasury."

I kind of doubt the Treasury will change the program which would effect ordinary investors who might be buying small amounts or as gifts, just to stop some churning of savings bonds.

The whole Government securities market is huge (in the trillions) with people buying and selling billions and billions of dollars of Government securities daily. This savings bond thing is just a drop in the bucket in comparison.




[This message has been edited by burgerwars (edited 10-02-2002).]