Wednesday, January 7, 2009

Failure of German bond sale - bad sign

German bond sale’s fate signals trouble ahead

This is a bad sign, according to Illargi at Automatic Earth:

Obama warns of a $1 trillion US deficit this year. It’s obvious the deficit will be nearer $2 trillion, but you have to feed it to them bite-size. It'll easily be more than ten times the 2007 deficit of $162 billion, in an economy with a rapidly shrinking GDP. Obama expects the deficit to remain over $1 trillion (read: way over) for many years to come. But in a stark warning to Obama and the US, the Financial Times reports that the first German (10-year) bond issue of the year failed. Yes that's the country with the far more favorable job numbers. There are far less questions about German solvency than there are about the US, and you can bet that Washington pays attention to news like that.


Anonymous said...

Every able body in the US is hunkered down around his or her television set, hoping that the worst is over. We don't know how they're going to react until the worst finally gets here, and until we know what the television tells them is actually going on. And there's nothing we can do in any event. I'm hunkered down in front of my computer, in my home library, hoping that my VA pension keeps coming monthly. I have no other income. I know there are many millions like me.

Ningen said...

I think we need to start thinking of more local, cooperative efforts. But what, I don't know.

I would think your VA pension is more stable than private or non-federal public pensions. I wish you the best.

engineer said...

"The president who said, “I didn’t come here to pass our problems on to the next president or the next generation — I’m here to solve them” would, over the next decade, pass $75,000 per household in ADDITIONAL debt into the laps of our children and grandchildren."

When does narcissistic security become a luxury?