A person, company or nation would be defined as ‘broke’ if it couldn’t pay its bills, and that is not the case with the U.S. Despite an annual budget deficit expected to reach $1.6 trillion this year, the government continues to meet its financial obligations, and investors say there is little concern that will change.
David J. Lynch repeating that which cannot be repeated enough. We have a ~$16 Trillion economy and the lowest tax burden in half a century. And, miracle of miracles, the beloved market realizes this because, as the linked article also notes, we can borrow at historically low interest rates, paying 0.68 percent on a two-year note, down almost 5% from what we were paying on that back in 2007.
Clearly, though: time to panic.
Clearly, though: time to panic.
Lemkin 