“The larger threat, of whether U.S. bonds could be put on credit watch, and downgraded, like Canada in 1992, or Denmark in 1983, seems remote.”
Remarkable given the $104 trillion in entitlements debt that we face:
http://conoverc.wordpress.com/2009/05/13/119/
Perhaps the bond markets foolishly believe The One will be able to perform a fiscal miracle of the loaves and the fishes.
“Remarkable given the $104 trillion in entitlements debt that we face:”
Well, just because the gov would like to spend it does not mean we will. That is what is holding things together, the hope that somebody with common sense will come on the scene.
What a mess this country is in. What a time to have no leadership anywhere on the federal level and often state and local as well.