3 ms·
Are they talking about the long term though? I think they are mainly discussing the situation the government is committed to in the 2010 fiscal year.
by pmorici 17y ago
Are they talking about the long term though? I think they are mainly discussing the situation the government is committed to in the 2010 fiscal year.
- anigbrowl 17y agoIndeed, but I took it to read that the market would be valuing bonds on the basis of permanent deficits. If they're expecting a combination of reasonable growth and a stabilizing of the debt load then rather than treating the recent increases as a trend, then I don't think we'll see bond spreads widen very dramatically. ZeroHedge seems to be assuming a kind of late bull market complacency that's blinding everyone everyone else to what the federal government is at, whereas in reality the Fed and the treasury are under close scrutiny worldwide.