The NY Times
It doesn’t get them anywhere near sustainability… Did you see the long term CBO chart, that showed debt to GDP going to 900% of GDP over the next 50yrs on a business as usual assumption? They have a lot of work to do.
I think S&P will cut em to AA+
Sent from my iPad
S&P chairman is watering down downgrade expectations:
Also from JPM: if USTs lose AAA, it will get messy, but it won’t be the End Of The World As We Know It (TM). Perhaps the crisis has been overhyped. For sure the US has massive fiscal problems. But it won’t be catastrophic if they get downgraded. Maybe it will be a good thing, as it might kick the political class’ collective head to get some serious fiscal reform done (social security, taxes, defence spending).
I am a little worried about collateral under ISDAs but I think as an asset class, USTs are ‘too big to sell’. At least in the short term.
I see you found your generator
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