By Anthony Mirhaydari – It’s clear the fiscal fight in Washington isn’t going to end anytime soon.
The causes of this mess are manifold.
At the core, the country abused its privilege as the issuer of the world’s reserve currency. The global demand for dollars enabled our debt dependence. It allowed households to leverage up with cheap mortgages. It allowed banks to play hedge fund and load up on asset-backed bonds sheltered in off-balance-sheet vehicles. And it allowed the government to promise low taxes, ample benefits, and plenty of bailout cash when it all went wrong in 2008. more> http://tinyurl.com/n9jn3nx
Related>
- Central Banks Gaming Out U.S. Default as Deadline Nears, Simon Kennedy, Jeff Black & Jennifer Ryan, Bloomberg
- Ted Cruz Could Force a Debt Default All by Himself, Joshua Green, Businessweek
- House Republicans Changed The Rules So A Majority Vote Couldn’t Stop The Government Shutdown, Ashley Alman, huffingtonpost.com
- Silicon Valley stays quiet as Washington implodes, Patrick Thibodeau, Computerworld
- Reid-McConnell Debt Talks Clouded by Past Deal Missteps, Laura Litvan & Kathleen Hunter, Bloomberg
- Panetta Calls Political Atmosphere the Worst in 50 Years, Albert R. Hunt, Bloomberg
- U.S. May Join Germany of 1933 in Pantheon of Defaults, John Glover, Bloomberg
- The budget is its own ‘debt ceiling’, Daniel Alpert and Robert Hockett, Reuters
Related articles
- Breaking Down the Potential Debt Deal – Businessweek (blog) (businessweek.com)
- How to Solve Debt Ceiling Crisis Forever (drudge.com)
- The default has already begun (blogs.reuters.com)
- CDS Market: US Default Odds at Only 4% – Bloomberg (bloomberg.com)
- The Rest Of The World Still Claims Faith In America (Even If Wall Street Doesn’t) (huffingtonpost.com)
Filed under: Banking, Business, CONGRESS WATCH, Economy, Leadership Tagged: Capital, Central bank, Congress Watch, Currency, Debt, Deficit, Government, Monetary policy, United States
