The Shutdown Is a Sideshow. Debt Is the Threattags: debt ceiling, government shutdown
Niall Ferguson's latest book is "The Great Degeneration: How Institutions Decay and Economies Die" (Penguin Press, 2013).
In the words of a veteran investor, watching the U.S. bond market today is like sitting in a packed theater and smelling smoke. You look around for signs of other nervous sniffers. But everyone else seems oblivious.
Yes, the federal government shut down this week. Yes, we are just two weeks away from the point when the Treasury secretary says he will run out of cash if the debt ceiling isn't raised. Yes, bond king Bill Gross has been on TV warning that a default by the government would be "catastrophic." Yet the yield on a 10-year Treasury note has fallen slightly over the past month (though short-term T-bill rates ticked up this week).
Part of the reason people aren't rushing for the exits is that the comedy they are watching is so horribly fascinating. In his vain attempt to stop the Senate striking out the defunding of ObamaCare from the last version of the continuing resolution, freshman Sen. Ted Cruz managed to quote Doctor Seuss while re-enacting a scene from the classic movie "Mr. Smith Goes to Washington."...
comments powered by Disqus
- Quote of the Day -- Time Magazine's Top 100 People
- Investigation: The Resegregation of America's Schools
- 5 Explosive Revelations Leaked from Senate Report Exposing CIA Torture
- In Parts of the South, Glorifying Slavery No Longer Pays the Bills
- Russian history professor says Russians are being manipulated by propaganda
- She Came All the Way from Melbourne to Attend the OAH
- The 7 Most Popular HNN Videos from the 2014 OAH
- Jesse Lemisch’s up-from-below history is still strikingly original
- U.Va. Historian Alan Taylor Wins 2014 Pulitzer for Book on Slaves and War -- His second Pulitzer!
- UW Professor Stephanie Camp, 46, feminist historian, dies