Tell me again why we should reward the financial sector banksters again?
“The U.S. financial sectors that would be at the greatest risk would be those with business models that depend at least partially on short-term funding. These include banks, funds, finance companies, exchanges and clearinghouses, broker-dealers, and life insurers.” <- not sure about you, but these people are not doing me any favors lately..
“While the debt limit has been raised numerous times in the past, and sometimes the issue has been contentious, bond interest and principal have always been paid on time. If the debt limit is raised again and a default avoided, the Aaa rating would likely be confirmed. However, the outlook assigned at that time to the government bond rating would very likely be changed to negative at the conclusion of the review unless substantial and credible agreement is achieved on a budget that includes long-term deficit reduction. To retain a stable outlook, such an agreement should include a deficit trajectory that leads to stabilization and then decline in the ratios of federal government debt to GDP and debt to revenue beginning within the next few years.”
Economist: Dicing with Debt and the Future
July 14, 2011
This analysis outlines eight reasons why the “Theory of Inevitable Compromise”–that Republicans and Democrats will ultimately hammer out a deal to raise the nation’s debt ceiling ahead of August 2–may not hold true in this instance.
“Rut row” -Scooby