U.S. Receives Record Demand For Its Bonds Under Obama, Helping The Deficit

[Lakhota]

Bloomberg News reports that the U.S. government received record demand for its bonds in 2011, “pushing longer-maturity treasuries to their best performance since 1995 in a sign that President Obama may have little difficulty” financing the budget deficit. The European debt crisis is driving investors to buy U.S. assets, allowing the government to get an “all-time high bid-to-cover ratio of 9.07 for $30 billion of four-week bills it auctioned on Dec. 20 even though they pay zero interest.” Despite the GOP’s factually-challenged fear-mongering about the deficit, the high demand for U.S. bonds are “helping to contain borrowing costs and making it cheaper as a percentage of gross domestic product to finance deficits than when the nation last had budget surpluses.”

U.S. Receives Record Demand For Its Bonds Under Obama, Helping The Deficit | ThinkProgress

Obama Wins Most Demand for Debt of U.S. Presidents Since Before First Bush- Bloomberg

 

[Lakhota]

2012 Economic Outlook: Why Things Are Better Than We Think - The Daily Beast

 

[Oldstyle]

So what you're basically saying is that Europe (you know...that place that you progressives want us to emuluate?) is in such bad shape that people are choosing to buy US bonds because they are safer than European bonds?

Love your reasoning, Lakhota...

 

[Old Rocks]

Europe absorbed the remenants of the Soviet Empire, and are still paying for that. Plus the eternal weak nations of Greece, Spain, and Italy have drug them down. But Germany still exports more than we do, and has a vibrant economy. And has had universal health care and a government sponsored workers pension program the longest of any European nation.

 

[Mr. H.]

Record bond demand absorbs debt, pushing yields up.
Damned if ya do, and damned if ya do.

And if ya do, ya do be do. And to do is to be.
To be is to do.
Do be do be doo.
Scoop the debt that is.

It's like scoopin' poop.

 

[Lakhota]

So what you're basically saying is that Europe (you know...that place that you progressives want us to emuluate?) is in such bad shape that people are choosing to buy US bonds because they are safer than European bonds?

Love your reasoning, Lakhota...

Really? I'm sure you totally understand all the real causal factors leading up to the European debt crisis.

The causes of the European debt crisis

 

[ekrem]

Plus the eternal weak nations of Greece, Spain, and Italy have drug them down. But Germany still exports more than we do, and has a vibrant economy. And has had universal health care and a government sponsored workers pension program the longest of any European nation.

Italy is very different. It's still an industrial and scientific power and the ingredients to fix Italy are all within Italy itself. Average Italian is wealthier than average German. A sign, that taxes in Italy were not at levels they should've been.
There are nations who have ups-and-downs but always influenced the world. Italy is such nation. It has never been a "weak nation" and will never be. It will bounce back.

You can't put them into 1 sentence with Greece.

 

[Mad Scientist]

Wall Street Confucius say: "Crabs no look so bad when all other hooker have AIDS."

 

[Flopper]

US treasuries are and will remain the bastion of safety and liquidity. Whenever there is a crisis, the world turns to the US as a safe harbor for assets.

 

[editec]

NOW actaully is a damned good time for municiplaities to borrow for public works projects.

The interest rates are very low and the extra p-rojects would do good thing to the economy, too.

Of course getting the funding might be a problem given that banks are apparently unwilling to lend any money since they aren't sure whether they are broke or not.

 

[ba1614]

The only thing to follow a prediction of the obama economy is an excuse.

 

[DaGoose]

Bloomberg News reports that the U.S. government received record demand for its bonds in 2011, “pushing longer-maturity treasuries to their best performance since 1995 in a sign that President Obama may have little difficulty” financing the budget deficit. The European debt crisis is driving investors to buy U.S. assets, allowing the government to get an “all-time high bid-to-cover ratio of 9.07 for $30 billion of four-week bills it auctioned on Dec. 20 even though they pay zero interest.” Despite the GOP’s factually-challenged fear-mongering about the deficit, the high demand for U.S. bonds are “helping to contain borrowing costs and making it cheaper as a percentage of gross domestic product to finance deficits than when the nation last had budget surpluses.”

U.S. Receives Record Demand For Its Bonds Under Obama, Helping The Deficit | ThinkProgress

Obama Wins Most Demand for Debt of U.S. Presidents Since Before First Bush- Bloomberg

I knew the Cons on this board would try and put a negative spin on this and, as usual they did not disappoint.

 

[Conservative]

Bloomberg News reports that the U.S. government received record demand for its bonds in 2011, “pushing longer-maturity treasuries to their best performance since 1995 in a sign that President Obama may have little difficulty” financing the budget deficit. The European debt crisis is driving investors to buy U.S. assets, allowing the government to get an “all-time high bid-to-cover ratio of 9.07 for $30 billion of four-week bills it auctioned on Dec. 20 even though they pay zero interest.” Despite the GOP’s factually-challenged fear-mongering about the deficit, the high demand for U.S. bonds are “helping to contain borrowing costs and making it cheaper as a percentage of gross domestic product to finance deficits than when the nation last had budget surpluses.”

U.S. Receives Record Demand For Its Bonds Under Obama, Helping The Deficit | ThinkProgress

Obama Wins Most Demand for Debt of U.S. Presidents Since Before First Bush- Bloomberg

pathetic.

This is the opening paragraph from your second link...

The U.S. government received record demand for its bonds in 2011, pushing longer-maturity Treasuries to their best performance since 1995 in a sign that President Barack Obama may have little difficulty financing a fourth consecutive year of $1 trillion budget deficits.

How the fuck is that a good thing, Shitting Bull?


And this...

The spreading sovereign debt crisis in Europe and slower global growth are driving investors to the safety of U.S. assets...

...shows the credit is NOT Obama's, dip-stick.


Again...

The worst financial crisis since the Great Depression boosted the allure of Treasuries, as investors sought a haven amid a plunge in the value of higher risk assets such as stocks and corporate bonds.

The only part of this Obama should get credit for, is keeping the financial crisis going so long.

That’s even as budget deficits have totaled $4 trillion in the three fiscal years from October 2008 through September 2011.

How is this good, again???

 

[Conservative]

So what you're basically saying is that Europe (you know...that place that you progressives want us to emuluate?) is in such bad shape that people are choosing to buy US bonds because they are safer than European bonds?

Love your reasoning, Lakhota...

Really? I'm sure you totally understand all the real causal factors leading up to the European debt crisis.

The causes of the European debt crisis

nice deflection, Shitting Bull, but he did not mention the CAUSE of the European debt crisis in that post.

 

[Seawytch]

NOW actaully is a damned good time for municiplaities to borrow for public works projects.

The interest rates are very low and the extra p-rojects would do good thing to the economy, too.

Of course getting the funding might be a problem given that banks are apparently unwilling to lend any money since they aren't sure whether they are broke or not.

They might not be sure, but we are. The banks are sitting on trillions.

 

[Oldstyle]

Europe absorbed the remenants of the Soviet Empire, and are still paying for that. Plus the eternal weak nations of Greece, Spain, and Italy have drug them down. But Germany still exports more than we do, and has a vibrant economy. And has had universal health care and a government sponsored workers pension program the longest of any European nation.

Europe absorbing the remenants of the Soviet Empire is what's made them weak? Sorry but you've lost me with that analysis. West Germany is the country that "absorbed" East Germany and they are the strongest country of them all. What did Greece, Spain, or Italy absorb?

So let's examine WHY Greece, Spain and Italy are eternally weak. Could it possibly be because of their system of entitlements (which progressives here want to emulate) have made them that way? And if that's the case then why are we trying to duplicate what they have done to arrive at this point?

 

[Katzndogz]

The whole idea that if we can simply borrow enough we will eventually get out of debt is ridiculous.

 

[Full-Auto]

Bloomberg News reports that the U.S. government received record demand for its bonds in 2011, “pushing longer-maturity treasuries to their best performance since 1995 in a sign that President Obama may have little difficulty” financing the budget deficit. The European debt crisis is driving investors to buy U.S. assets, allowing the government to get an “all-time high bid-to-cover ratio of 9.07 for $30 billion of four-week bills it auctioned on Dec. 20 even though they pay zero interest.” Despite the GOP’s factually-challenged fear-mongering about the deficit, the high demand for U.S. bonds are “helping to contain borrowing costs and making it cheaper as a percentage of gross domestic product to finance deficits than when the nation last had budget surpluses.”

U.S. Receives Record Demand For Its Bonds Under Obama, Helping The Deficit | ThinkProgress

Obama Wins Most Demand for Debt of U.S. Presidents Since Before First Bush- Bloomberg

I knew the Cons on this board would try and put a negative spin on this and, as usual they did not disappoint.

LOL The debt service last year was 454 billion dollars.

Does that need to be spun?

 

[Flopper]

NOW actaully is a damned good time for municiplaities to borrow for public works projects.

The interest rates are very low and the extra p-rojects would do good thing to the economy, too.

Of course getting the funding might be a problem given that banks are apparently unwilling to lend any money since they aren't sure whether they are broke or not.

They might not be sure, but we are. The banks are sitting on trillions.

The largest buyers of municipal bonds are individuals, mutual funds, and casualty insurance companies. Although commercial banks do buy them, the banks are not a major source of funding. The problem that many state and local governments face is they cannot offer the quality of bonds that buyers are seeking thus they have to pay higher interest rates.