March 15, 2010 – 12:30 pm
This story fits nicely with what I’ve been writing and saying about higher interest rates. Moody’s is a rating agency, not everyone’s favorite class of people, and definitely subject to bullying by the US govt. That’s why they’re laying out their metrics here. If debt service goes above 10% of govt revenue, you’re on debt-reversibility watch. Above 14%, you lose your AAA.
I know I’m sounding like a broken record, but: You can’t have a strong recovery without getting higher interest rates. And if interest rates should rise significantly in the near-midcurve, where US sovereign debt is concentrated, we’ll be in a very… interesting situation.
November 18, 2009 – 9:58 am
The Democrat leadership in Washington is terrified that people will start blaming them for historically high unemployment levels, despite their best efforts to create or save jobs in Texas District 85 and elsewhere.
September 8, 2009 – 9:25 am
Today’s Coffee and Markets podcast focuses on what the next few months will bring for the stock market, the upcoming corporate earnings reports, China’s economy, and the limits of stimulus — global recovery, or questionable path?
August 17, 2009 – 11:24 am
I’ve never been shy about my belief that economic conditions will remain weak for a long time to come. That’s not to say that a recession will continue, because at some point the economy has to stop contracting. But contrary to conventional belief, the conditions are not in place for the kind of strong recovery we’ve seen in the recent past. Neither the underlying financial conditions nor the consumer demand are in place for that.
August 17, 2009 – 8:32 am
Today’s conversation focuses on the action we’re seeing in the stock market, the reports from Japan and the overnight futures market balanced against reports of recovery, and Jerry Bowyer on the hires rate.
Today’s edition concerns the economy, the Treasury auctions, and recent action on the bond market, with the question: is this a recovery, or is it just another bubble?
