By The Way, We’re Definitely Losing Our AAA Credit Rating

While Americans were fixated on the health care vote and the gutting of our Constitution this news item was ignored even though it significantly impacts our ability to fund any entitlement program, as well as out ability as a nation to stay afloat:

From Bloomberg:

March 22 (Bloomberg) — The bond market is saying that it’s safer to lend to Warren Buffett  than Barack Obama.

Two-year notes sold by the billionaire’s Berkshire Hathaway Inc. in February yield 3.5 basis points less than Treasuries of similar maturity, according to data compiled by Bloomberg. Procter & Gamble Co., Johnson & Johnson and Lowe’s Cos. debt also traded at lower yields in recent weeks, a situation former Lehman Brothers Holdings Inc. chief fixed-income strategist Jack Malvey calls an “exceedingly rare” event in the history of the bond market.

The $2.59 trillion of Treasury Department sales since the start of 2009 have created a glut as the budget deficit swelled to a post-World War II-record 10 percent of the economy and raised concerns whether the U.S. deserves its AAA credit rating. The increased borrowing may also undermine the first-quarter rally in Treasuries as the economy improves.

“It’s a slap upside the head of the government,” said Mitchell Stapley, the chief fixed-income officer in Grand Rapids, Michigan, at Fifth Third Asset Management, which oversees $22 billion. “It could be the moment where hopefully you realize that risk is beginning to creep into your credit profile and the costs associated with that can be pretty scary.”

I wouldn’t count on that slap upside the head waking up the Democrats anytime soon. But now is your chance to wake up and start taking care of business. Get ready for an economic collapse now.

2 thoughts on “By The Way, We’re Definitely Losing Our AAA Credit Rating

  1. Hey Rob- Good news for sure. What next, China and Japan sieze the opportunity to cash in thier debt investments to ultimately destroy the US?
    Hooo, what a great time to be an American.

    The zion terrorist is doing a good job at Palastinian ethnic cleansing. Ban Ki Moon is outraged with israel. Good job ya’ll.

  2. There is no ethnic cleansing in Palestine but the Christians within Palestinian territory are being raped and murdered every day. No complaints about that I see.

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