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Posted

S&P: "You've got too much debt."

 

White House: "La la la la la! We can't hear you!"

 

"Look, over there a birther."

 

 

 

 

 

A side observation: has anyone ever expressed concern that the US government is able to determine its own debt limit? Can I have that kind of power? So I can use it to, say, tell banks "yes, of course I can afford that $800k mortgage on my $30k annual salary..."

 

We have a really screwed up system.

 

What the hell!!! they vote themselves raises too.

Posted

What the hell!!! they vote themselves raises too.

 

At least there's a law that says the raises they vote aren't in force until after the following election.

 

Yes, JA, this is your cue to B word about incumbent reelection rates... :D

Posted (edited)

At least there's a law that says the raises they vote aren't in force until after the following election.

 

Yes, JA, this is your cue to B word about incumbent reelection rates... :D

 

In the last cycle's "blood bath," we had 85+% reelection. That'll teach 'em!

 

Don't invoke my name. I like sleeping.

Edited by John Adams
Posted

Wow! Big story! How high did the yield on the 10-year T-bond rise because of the S&P's statement?

And T-Bills? Is all of this government borrowing driving the 3-month yield past 0.05% yet?

 

Oh misery and woe, why are yields STILL so low?

Posted (edited)

Wow! Big story! How high did the yield on the 10-year T-bond rise because of the S&P's statement?

And T-Bills? Is all of this government borrowing driving the 3-month yield past 0.05% yet?

 

Oh misery and woe, why are yields STILL so low?

 

This is goldman's explanation, but I haven't read the whole article or have any comments on the analysis.

zerohedge

Edited by meazza
Posted

Wow! Big story! How high did the yield on the 10-year T-bond rise because of the S&P's statement?

And T-Bills? Is all of this government borrowing driving the 3-month yield past 0.05% yet?

 

Oh misery and woe, why are yields STILL so low?

Wow! you sound just like Paul Krugman. I wonder where Spanish and Greek Yields were a few months before a run on their bonds began?

 

Everything is ok until they aren't. Remember that

Posted

Wow! you sound just like Paul Krugman. I wonder where Spanish and Greek Yields were a few months before a run on their bonds began?

 

Everything is ok until they aren't. Remember that

 

That's exactly right.

 

These idiots would have us believe we can keep poking a bear indefinitely, and that it will never wake up and squish us.

 

But when it does, whose fault will it be? The private sector, Wall Street, and of course, mine. :rolleyes:

Posted

Wow! you sound just like Paul Krugman. I wonder where Spanish and Greek Yields were a few months before a run on their bonds began?

 

Everything is ok until they aren't. Remember that

As I told you quite some time back, there's a huge difference between Spain/Greece and the US--US issues a sovereign currency; Spain/Greece don't. Haven't you learned anything about the ability of the FED?

Posted (edited)

As I told you quite some time back, there's a huge difference between Spain/Greece and the US--US issues a sovereign currency; Spain/Greece don't. Haven't you learned anything about the ability of the FED?

Thats not the point TPS, you were infering that everything is kosher simply because the bond market hasnt responded or signaled any fear yet. The point I'm making, is that that is a terrible gauge to determine if there are any real risks to the bond markets.

 

I suggest you read up on Ken Rogoff and Carmen Reinhardt's thesis on Sovereign debt, you may actually learn something ;)

Edited by Magox
Posted

Thats not the point TPS, you were infering that everything is kosher simply because the bond market hasnt responded or signaled any fear yet. The point I'm making, is that that is a terrible gauge to determine if there are any real risks to the bond markets.

 

I suggest you read up on Ken Rogoff and Carmen Reinhardt's thesis on Sovereign debt, you may actually learn something ;)

I've read it.

Posted

Wow! Big story! How high did the yield on the 10-year T-bond rise because of the S&P's statement?

And T-Bills? Is all of this government borrowing driving the 3-month yield past 0.05% yet?

Oh misery and woe, why are yields STILL so low?Wow! you sound just like Paul Krugman. I wonder where Spanish and Greek Yields were a few months before a run on their bonds began?

 

Everything is ok until they aren't. Remember that

 

 

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