economics politics

This can’t be good

Via Bloomberg, the US government now pays more for credit than several other bonds. This means that investors see Berkshire Hathaway, Lowe’s, Proctor and Gamble, and Johnson and Johnson as safer bets fro getting their money back than the US government. Think abut that for a moment. The nation’s debt is starting to loom, and the latest vote has added an enormous burden to it over time. Or at least that’s how the financial world sees it. The US is in danger of losing it’s AAA bond rating from Moody’s. Treasuries may no longer be the go-to conservative investment.

I’m really hoping that this will cause some sort of fiscal restraint to enter into the political mindset before there’s a real problem. I’m not optimistic though. As long as politicians can promise benefits now and payments later, that is what they will do.

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