Actions Speak Louder Than Words.... The Bond Market.

Discussion in 'Politics' started by Murf76, Mar 26, 2010.

  1. Murf76
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    Murf76 Senior Member

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    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.
     
  2. Xenophon
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    Xenophon Gone and forgotten

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    Trusting america is a bad risk.

    And you shitheads wonder why we protest the government.
     
  3. Murf76
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    Murf76 Senior Member

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    And no wonder....
    So... we see between these two stories that the problem Moody's cites as a threat to our AAA-rating is interest on the debt and that the debt is GROWING out of control. :eek:
     
  4. Xenophon
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    Xenophon Gone and forgotten

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    Its beyound growing, its gone.

    Barrycare was the final gut shot, within 8 years we won't be able to pay the interest let alone touch teh principal of the debt.
     
  5. Murf76
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    Murf76 Senior Member

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    Well, yeah. I don't believe these estimates are inclusive yet of this healthcare fiasco. This thing has GOT to be repealed. And we've got to put REAL SOLUTIONS in place that actually reduce the costs of healthcare, so the economy can rebound. We need to call back as much of the reckless spending as we can, overhaul entitlement spending, and trim every scrap of fat from the budget we can find.
     
  6. Claudette
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    Claudette Gold Member

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    I totally agree.

    One has to wonder whats next out of the hat for OL'BO and how much it will cost the taaxpayers??

    Immigration reform??

    Takeover of the Financial sector??

    Crap and Trade??

    Gotta wonder.
     
  7. Murf76
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    Murf76 Senior Member

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    Obama's agenda is just a hit parade of job killers. There can be no growth without stability. And everything he does destabilizes the economy, making it impossible for employers to pull together a comprehensive business plan.
     
  8. Gatekeeper
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    Gatekeeper Senior Member

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    How come so many in here,USMB, can see what the heck is going on with our economy, yet in Washington D.C. we have elected, some, people who, by all appearances, are fiscally blind and stupid, politically and internationally naive and let's not forget arrogant, and as an added bonus, have some festering nodule for brains.

    And many believe because the stock market, has the appearances of doing well in short term, that it's the average American citizen confidence, buying back into America........NOT......... I believe it's another 'market bubble' in the making.
     
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  9. Truthmatters
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    Truthmatters BANNED

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    Michael Barone is a right wing shill
     
  10. Soggy in NOLA
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    Soggy in NOLA Platinum Member

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    This current group in DC are Marxists, they believe in centralized/command economies.. Never mind that they can't cite one sucess, they believe that you just have to "make it so".

    And yes, there is a major bubble in the making... the stock market will collapse again this fall and there is another round of bank failures coming as the Administration puts futher pressure on banks to keep risky loans afloat.
     

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