As my father always said..."the market climbs a wall of worry".
Posted on 05/03/2009 7:24:40 PM PDT by reaganaut1
The nation’s debt clock is ticking faster than ever — and Wall Street is getting worried.
As the Obama administration racks up an unprecedented spending bill for bank bailouts, Detroit rescues, health care overhauls and stimulus plans, the bond market is starting to push up the cost of trillions of dollars in borrowing for the government.
Last week, the yield on 10-year Treasury notes rose to its highest level since November, briefly touching 3.17 percent, a sign that investors are demanding larger returns on the masses of United States debt being issued to finance an economic recovery.
...
Already, in the first six months of this fiscal year, the federal deficit is running at $956.8 billion, or nearly one seventh of gross domestic product — levels not seen since World War II, according to Wrightson ICAP, a research firm.
Debt held by the public is projected by the Congressional Budget Office to rise from 41 percent of gross domestic product in 2008 to 51 percent in 2009 and to a peak of around 54 percent in 2011 before declining again in the following years. For all of 2009, the administration probably needs to borrow about $2 trillion.
...
Last week, the Treasury Borrowing Advisory Committee, a group of industry officials that advises the Treasury on its financing needs, warned about the consequences of higher deficits at a time when tax revenues were “collapsing” by 14 percent in the first half of the fiscal year.
“Given the outlook for the economy, the cost of restoring a smoothly functioning financial system and the pending entitlement obligations to retiring baby boomers,” a report from the committee said, “the fiscal outlook is one of rapidly increasing debt in the years ahead.”
(Excerpt) Read more at nytimes.com ...
The solution is massive government spending cuts.
“Page 53” ping.
The Slimes ACTUALLY reported the news? Quick, what is the temp in hell?
DUH...the NY Times has a bunch of C student “journalists” that understand nothing about economics and less about politics.
“Worries rise” indicates present tense.
Most human Americans who are neither mentally unstable nor liars have been tense in the past over the debt!!!
Not good.
Watch the dollar lose value, tax revenue drop like a rock, and then we’ll be in a zimbabwe-style pickle.
40 degrees F and dropping.
Bill clinton, who is a creep but is not clueless like O, used to worry about the bond market. He used to say he wishes “he would come back after he dies as the bond markert so he could scare the hell out of people.”
The comment is a window into Clinton’s thuggish mind but he knew he could not run defecits anywhere like Obama.
The whole bonds and credit market was hammed and totally screwed up due to Soros, Flowers, john pauls and O’s offshore cronies hammering the markets in Oct 2008 to get him elected. The bonds markets are getting a bit closer to normal and these defecits are insanity.
Hussein wants to turn America into Zimbabwe.
Zimbabwe keeps coming up as my biggest fear. This is not good.
Well isn’t that what we’ve been screaming about?
As my father always said..."the market climbs a wall of worry".
We already have our Mugabe.
The difference is when his supporters come for my property all they’ll get is a pine overcoat for their trip to Hell.
Our government is going to default on its debts both to T-Bill holders and to the citizens that it stole the fradulant SS/Medicare taxes from.
It was actually James Carville who said something like that: "When I come back I want to come back as the bond market, because then you can intimidate everybody."
When the government spends over 50 percent of GDP then effectively the country is Bankrupt..
Thanks Obama... you put the USA on welfare.... Typical....
The problem is where are you goint to cut. The entitlement programs consume about 50% of the budget. DOD is about 20% and the debt servicing costs are about 15%. That doesn’t leave much to cut.
Note how the volume tapers off as the market rises. The sheep are being led to slaughter.
Bingo. The road map out is the Constitution. If its not in Article 1, Section 8, you can't spend money on it.
Who’s worrying? Not gubmint. Gubmint is too busy spending to worry. Not me and my fellow taxpayers. We still have $20 or $30 we can kick in. I think this worry claim is vastly over-blown.
Besides, if ‘Merca gets too deeply into debt we can call that outfit that settles credit card debts for you. They have experience at this sort of thing.
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