This here be a ferr’n crisis. The interest rates on US gov debt be sinkin like an iron leg tossed o’erboard, I says. The Spanish and Italian bond yields be rising faster than a mizzenmast moonraker to nearly 7%.
Scurvy scallywags, these Spaniards and Lateens be.
Alasdair
“Lateen” is a type of sailing rig, you *twit* ! (grin)
James
Like I said–“Why panic, you’ll just die tense?”
Casey
Arr, once me matey served me breakfast made in me bedpan, not me frying pan. I says to him, “Pan, ick!”
In any case, Apple and Google are starting to come down to nice buy-in points, if you don’t own them already. If the DJIA sinks down to 10,500 as some are predicting, I may have to go scrounge up some loose change and see how much I can buy up.
It’s also worth noting that hedge funds and other major firms are finally jumping into the housing market, which suggests that we have finally bottomed out.
Alasdair
AMLT #6 – the report says “Supertanker America is turning and government spending as a share of GDP is scheduled to fall by about 2% of GDP over the next 10 years.” – do you happen to know if that will bring us back to what seems to be the sustainable 18% or so of GDP ? Or will we still be above the 20% ?
Alasdair, I believe that current federal spending levels are about 23.5% of GDP and thus those projections would be that we fall back to about 21% in ten years. Right now I think revenues are closer to 15% of GDP, whereas the norm has typically been closer to 17.5%. IOW, we’d still be running deficits. Unfortunately, most calculations for national debt as a percentage of GDP do not take into account the present value of unfunded liabilities like Medicare and Social Security. Also, most economic growth projections for the next ten years are rosier than what current data would suggest is reasonable. So the idea that Supertanker America is turning fast enough to avoid crisis is rather unsubstantiatedly optimistic.
Alasdair
AMLTrojan #8 – that sounds about like what I have been finding …
During the years and years of catastrophic Eeeevil Booosh deficits in the $400B magnitude, spending was about 18-18.5% or so while revenue was in hte 17.5-18% vicinity …
Now, under Teh One, we have had not quite 3 years of trivial unimportant federal deficits in the $1500B magnitude, much better (in democrat eyes) than the catastrophic Eeeevil Booosh deficits around the $400B magnitude … as a Scot, and as someone who is *not* arithmetically-disadvantaged, my opinions of the relative severities of the two different magnitudes of deficits is about 180 degrees different from the democrat one …
Still, like with David K, Brendan’s opinions can count even if he himself can’t …
{/me *mallards*, grinning}
gahrie
S&P said that in addition to the downgrade, it is issuing a negative outlook, meaning that there was a chance it will lower the rating further within the next two years. It said such a downgrade to AA would occur if the agency sees<b. less reductions in spending than Congress and the administration have agreed to make, higher interest rates or new fiscal pressures during this period.
Democrats own the downgrade. They fought Republicans and Tea Party supporters every step of they way, and forced a deal which was insufficient. They played class warfare and race politics against arguments that we needed to drastically change our spending habits.
This here be a ferr’n crisis. The interest rates on US gov debt be sinkin like an iron leg tossed o’erboard, I says. The Spanish and Italian bond yields be rising faster than a mizzenmast moonraker to nearly 7%.
Scurvy scallywags, these Spaniards and Lateens be.
“Lateen” is a type of sailing rig, you *twit* ! (grin)
Like I said–“Why panic, you’ll just die tense?”
Arr, once me matey served me breakfast made in me bedpan, not me frying pan. I says to him, “Pan, ick!”
Panic – he was the First Prime Minister of the Federal Republic of Yugoslavia, was he not ?
(and, by a curious coincidence, he was one of the guests at my wedding to my Lady Wife in 1978)
Anti-Panic?
In any case, Apple and Google are starting to come down to nice buy-in points, if you don’t own them already. If the DJIA sinks down to 10,500 as some are predicting, I may have to go scrounge up some loose change and see how much I can buy up.
It’s also worth noting that hedge funds and other major firms are finally jumping into the housing market, which suggests that we have finally bottomed out.
AMLT #6 – the report says “Supertanker America is turning and government spending as a share of GDP is scheduled to fall by about 2% of GDP over the next 10 years.” – do you happen to know if that will bring us back to what seems to be the sustainable 18% or so of GDP ? Or will we still be above the 20% ?
Alasdair, I believe that current federal spending levels are about 23.5% of GDP and thus those projections would be that we fall back to about 21% in ten years. Right now I think revenues are closer to 15% of GDP, whereas the norm has typically been closer to 17.5%. IOW, we’d still be running deficits. Unfortunately, most calculations for national debt as a percentage of GDP do not take into account the present value of unfunded liabilities like Medicare and Social Security. Also, most economic growth projections for the next ten years are rosier than what current data would suggest is reasonable. So the idea that Supertanker America is turning fast enough to avoid crisis is rather unsubstantiatedly optimistic.
AMLTrojan #8 – that sounds about like what I have been finding …
During the years and years of catastrophic Eeeevil Booosh deficits in the $400B magnitude, spending was about 18-18.5% or so while revenue was in hte 17.5-18% vicinity …
Now, under Teh One, we have had not quite 3 years of trivial unimportant federal deficits in the $1500B magnitude, much better (in democrat eyes) than the catastrophic Eeeevil Booosh deficits around the $400B magnitude … as a Scot, and as someone who is *not* arithmetically-disadvantaged, my opinions of the relative severities of the two different magnitudes of deficits is about 180 degrees different from the democrat one …
Still, like with David K, Brendan’s opinions can count even if he himself can’t …
{/me *mallards*, grinning}
S&P said that in addition to the downgrade, it is issuing a negative outlook, meaning that there was a chance it will lower the rating further within the next two years. It said such a downgrade to AA would occur if the agency sees<b. less reductions in spending than Congress and the administration have agreed to make, higher interest rates or new fiscal pressures during this period.
http://www.foxnews.com/politics/2011/08/05/us-official-says-sp-reconsidering-us-credit-downgrade/#ixzz1UD0gaTok
Democrats own the downgrade. They fought Republicans and Tea Party supporters every step of they way, and forced a deal which was insufficient. They played class warfare and race politics against arguments that we needed to drastically change our spending habits.
http://legalinsurrection.com/2011/08/sp-drops-u-s-credit-rating-to-aa/