March 25, 2010 Bond Markets Reflect the True Cost of Obamacare By Michael Barone Not many people noticed amid the Democrats' struggle to jam their health care bill through the House, but in recent weeks U.S. Treasury bonds have lost their status as the world's safest investment. The numbers are pretty clear. In February, Bloomberg News reports, Berkshire Hathaway sold two-year bonds with an interest rate lower than that on two-year Treasuries. A company run by a 79-year-old investor is a better credit risk, the markets are telling us, than the U.S. government. Buffett's firm isn't the only one. Procter & Gamble, Johnson & Johnson and Lowe's have been borrowing money at cheaper rates than Uncle Sam. Democrats wary of voting for the health care bill may have been soothed by the Congressional Budget Office's report that it would reduce federal deficits over the next 10 years. But bond buyers know that the Democrats gamed the CBO system to get a good score. (more...) RealClearPolitics - Bond Markets Reflect the True Cost of Obamacare You can fool some of the people some of the time... but when CASH is on the line, not so much. Barone is right. Bond buyers recognize that Democrats gamed the CBO. But I think it's going to end up being bigger than just this incident with the healthcare bill. Congress has burnt its credibility. Hence, we see diminished trust from investors. There's a recklessness in Washington that's presenting a direct threat to our economic future. And when we remove the political rhetoric from the equation, when we look to see what people DO rather than what they SAY... we can see that we've got a problem coming our way... another indicator that our AAA-rating is at risk.