08-04-2011, 07:42 PM
Welcome back to 1937. It wasn't great the first time, and it won't be any better now. I think the debt ceiling debacle has done quite a lot of damage, although more for the deal that was cut (and what it says about the political process) than for any lack of faith in the credit of the United States. US treasury bonds actually *rose*, but stocks crashed - the problem is growth, not confidence in government. Nobody is predicting growth in the face of severe cutbacks during a recession.
Out of curiosity, why is 100% of GDP a threshold? A milestone, maybe, but I've never quite understood why everyone is so comfortable with 90%, yet so panicked by 110%. What really matters is service vs. revenues... right?
-Jester
Out of curiosity, why is 100% of GDP a threshold? A milestone, maybe, but I've never quite understood why everyone is so comfortable with 90%, yet so panicked by 110%. What really matters is service vs. revenues... right?
-Jester