Never bet against market logic.
The U.S. is still the safest investment. That's why they can borrow at very low interest rates.
The patient is not dead. Far from it. Debt levels may be at nominal historic highs, but as a percent of GNP, they are far from highs. And no where near the historic highs of some other countries like the UK which recovered.
Quantitative Easing makes sense during a deflationary recession with a severe credit contraction.
The deficits are temporary. Revenues will go back up as the economy recovers. Spending will go down as the economy recovers. Recovery will mean most TARP funds get repaid from the banking sector. Extended unemployment programs will drop and stimulus funds will no longer be needed.
If Republicans don't reign it in wasteful pork project spending after the 2010 elections, then third Party conservatives and President Sarah Palin will after 2012 elections.
War spending will not last forever. We are wrapping up in Iraq. Either we will wrap up Afghanistan and get out. Or we will take out Iran and Syria.
Cracks in Obama's NO ENERGY policy are starting to be seen. Not only has the Senate killed Cap and Trade, but Obama approved federal loans for two new nuclear reactors for Georgia.
A political payoff to a 'nuke only' power company that employed Rahm and backed 'cap & trade"; and which stands to make huge profits with 'cap & trade' because of it's competitive advantage over the coal based power companies.
http://www.freerepublic.com/focus/news/2456041/posts?page=12#12