Y2K Syndrome Infects Debt Debate

OK kids, here we go. Expect the increasing likelihood of a federal default experiment next week as Tea Party lawmakers on Capitol Hill push GOP leaders to at least allow a one or two day lapse in raising the debt limit to make a point.

The less-than-panicky (call it jittery) response by world markets on Monday to debt-talk failures has strengthened the right-wing argument that a default is no catastrophe. Comparisons are being made to the wolf crying days of the predicted Y2K disaster that never happened.

Even Wall Street appears prepared for this scenario, instead rallying to celebrate a roll of positive profit earnings by major stocks.

Still, this experiment with the nation’s credit rating seems irresponsibly risky since that’s about the only good thing we’ve got going in the global economy.

15 thoughts on “Y2K Syndrome Infects Debt Debate

  1. One small commentary on the above: Many financial analysts recommending transfer to Australian bonds. Triple A with excellent exposure to orient. Even with all their environmental woes, they have a parliament that can actually get things done.

  2. The two things I have not heard anyone on the news programs talk about are why the Department of Justice has not put the Rating Agencies’, and the big banks, management in jail for the fraudulent ratings on the mortgage backed instruments and the effect a default on the debt will have on the dollar and thus the cost of gas. $5 to $8 gas. That will put the economy right over the cliff.

  3. Gambling with the US credit rating and with other people’s rent/food/healthcare money

  4. Are these Teabaggers in the House insane? They are playing with fire. Our credit rating can be downgraded at any moment. Don’t they understand that default, even for a couple days as an experiment, can cost us dearly in higher interest rates and increase our debt? I’m beyond appalled that they want to play games and “experiment” with our economy and economic standing in the world. They are out to destroy this country!

  5. Erin the Valley Girl financial commentator from CNBC announced
    nothing counts unless there are cuts to Social Security, Medicare and Medicaide

    and why is that?
    And by the way moroonetta — the financial ratings of the US have already been lowered

  6. just to be perfectly clear when I said this

    And by the way moroonetta — the financial ratings of the US have already been lowered

    I was talking about Erin Burnett

  7. Matthews wants Bill Clinton as Secretary of the Treasury? Hillary at State? Sounds lovely Chris but Dream on … Nothing like overshadowing the Presidency with a really, really big shadow. Just give the country back to the Clintons.

    Just typing that made me smile.

    Ha Jamie, great comment and it made me smile too!

  8. Ezra Klein: Republicans have ‘Won’
    by Taylor Marsh

    We don’t yet know what the final deal to raise the debt ceiling will be. But now that Harry Reid is developing a proposal with $2.5 trillion in cuts and nothing in revenues, it’s a safe bet that it won’t include any tax increases. Which means that whether Republicans realize it or not, they’ve won. The question now is whether they can stop. [...] If you take the Republicans’ goals as avoiding a deal in which they have to vote for tax increases and denying Obama a political victory, it looks like they have succeeded. … – Ezra Klein

  9. Erin the Valley Girl financial commentator from CNBC announced
    nothing counts unless there are cuts to Social Security, Medicare and Medicaide

    KGC
    I think you appropriately named Erin, what BS! Hell but listen to the president as he says he’s trying to strengthen SS and Medicare, WTF!!

  10. Craig, thanks for being a sane voice in that D.C. aslyum, which seems even crazier as the debt crisis looms like Godzilla. Oh, the horror, the horror!
    Good to see you on Countdown, too.

Comments are closed.