Posted on 03/28/2010 6:10:31 PM PDT by Shellybenoit
If you want to destroy yourself and your reputation, you destroy you credit rating, piss off your enemies, and offend your friends.
Everything they are doing, they are doing by design.
First they destroy America.
Then they rebuild according the communist structure.
Just another nail in the coffin...
Jimmy Carter Redux..., here we come!
Never let a crisis go to waste.
I’ve been waiting for rising interest rates on Federal debt.....for months and months. Are we there yet?
I don’t know that the Treasury market can be pinned on the health care legislation specifically. There’s been a huge run-up in Treasuries and bills that has been due to fall for some time now.
That said, the timing of the health care legislation could not be worse (relative to the Fed ending QE operations on MBS), and the financial lies within the legislation and surrounding its passage could scarcely be bigger. The more that comes out in the post-passage discovery of the bill, the worse it looks.
The thing that will weigh on Treasuries more and more will be the reports of tax receipts coming into the Treasury, coupled with the news that the Social Security system is now in a mode of redeeming Treasuries to pay benefits (ie, the taxes paid into SS are now exceeded by the claims on SS). This latter issue means that there is an unexpected new supply of Treasury debt coming into the market - one which won’t be reversed easily, if ever.
No, we’re not. The Fed is going to keep short-term rates low for the foreseeable future. I think we’ll see a bump in mortgage rates soon, tho, as the Fed’s QE program ends.
After that, the next place I expect rates to go up is in the muni market.
That we lose our AAA rating is no surprise. Just a matter of time.
Don’t worry. Obamacare will REDUCE the deficit... according to Obama and the CBO.
An obvious reaction, one that could have been foreseen.
If I were to take large new credit obligations, I wouldn’t be shocked if my credit card limit was reduced.
The federal government’s creditors have no less reason to be worried than mine would.
The fact that China (our primary banker) has told us in very diplomatic terms that they are concerned about our spending, is about all the evidence we need that to put another massive welfare entitlement (soon to be proved to be another SS-, Medicare-, Medicaid-sized entitlement) is a direct slap in the face to our lenders.
You only push for and pass massive spending like this when your aim is to piss of those who buy our debt and to destroy our credit rating.
“No, we’re not. The Fed is going to keep short-term rates low for the foreseeable future.”
When no one will buy their trash the rates will be forced up!
Didn’t the CBO later update their numbers, rather quietly? I recall some areticles about the middle of this past week stating that the numbers were revised and showed that Obummercare would create a deficit.
Inflation’s coming - we’re gonna have to pay more to get buyers...
Good. The sooner Daddy yanks our credit card, the sooner we’ll be forced to do what’s necessary to stand on our own two feet.
Obamanation seems not to care if we have buyers for our debt. Full fledged monetary crisis to stave off the loss of power (elections) for the leftist regime.
Exactly this is the game,I was wondering why they gave the banks all that tarp dough now its becoming apparent.
That’s true.
China is in something of a bind in the near-term, however. If they quit buying US debt completely, they allow rates to climb rapidly, and the US economy goes deeper into recession, with consumer spending declining even more. No US consumers and China suddenly has problems.
There’s a ‘short game’ and a ‘long game’ being played by the Obama administration here. That’s why most of the spending issues of this bill don’t start until after the 2012 election.
That’s true, but the problem right now is “where else are money managers going to put their money?”
Into Japan? They’re even more screwed on debt than we are.
Into the EU zone? The Euro has been exposed as ill-conceived and expanded to countries who can (and will) sink the Euro.
Russia? You might as well just give your money away - they’re a nation of kleptocrats.
China? Well, that’s been the hot play for the last 10 years. And now it looks like they have a bubble on their hands of their own.
That leaves the US dollar and US debt as a safe “parking” place for hot money - for now. So there are still buyers of US debt - for now.
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