The GOP’s hostage taking re: the debt ceiling is already causing ripple effects in the economy:
As of late May, the number of CDS contracts — essentially insurance policies on the possibility of a default — had risen by 82 percent. Equally as important, the cost of a CDS — the best indication of how much riskier U.S. debt has become — rose by more than 35 percent from April to May. Last week I spoke to a number of people who calculate such things for a living, and they said this change means that the interest rate the U.S. government has to pay has already increased by as much as 40 basis points compared with what it otherwise would be. This means higher federal borrowing costs and deficits, and overall higher interest rates on everything from car loans to mortgages to credit cards.
Remember all those “confidence” trolls the GOP trotted out in advance of retaining the Bush tax cuts for the wealthiest individuals in the US? Wonder where those guys went.
But, by all means, let’s talk about Weiner and whatever other body parts are on display in the Halls of Serious People. That’s the stuff that really matters.
Lemkin 