Or are we living and reliving "a boom-bust-bailout fiscal damage scenario that the Bank of England refers to routinely as the 'doom loop.'" Simon Johnson @The Baseline Scenario: "The United States faces some serious medium-term fiscal issues, but by any standard measure it does not face an immediate fiscal crisis. "Overindebted countries typically have a hard time financing themselves when the world becomes riskier yet turmoil in the Middle East is pushing down the interest rates on US government debt. "We are still seen as a safe haven... "Our main fiscal issues are three (see my testimony to the Senate Budget Committee earlier this month). "The most immediate problem is that our largest banks and closely related parts of the financial system blew themselves up in 2007-08. "The ensuring recession and associated loss of tax revenue will end up pushing up our government debt, as a percent of GDP, by around 40 percent..." So... do we tax the bankers that caused the Great Recession or continue to borrow from them? And destroy public unions as a corporate distraction.