The Chrysler cramdown and the GM offer to bondholders have had some unintended consequences:
NEW YORK (Reuters) - Scores of companies are being punished in the bond market as the Obama administration’s policies on General Motors and Chrysler LLC create new risks for creditors, a veteran bond strategist says.
As GM teeters toward a bankruptcy filing and [...]
The yield curve is at its steepest on record (via Bloomberg):
May 27 (Bloomberg) — The difference in yields between Treasury two- and 10-year notes widened to a record on concern surging sales of U.S. debt will overwhelm the Federal Reserve’s efforts to keep borrowing costs low.
The so-called yield curve steepened to 2.75 percentage points, surpassing [...]
Talk of adding a VAT (value added tax) to the long list of taxes American already pay is making the rounds in DC (via the WaPo):
With budget deficits soaring and President Obama pushing a trillion-dollar-plus expansion of health coverage, some Washington policymakers are taking a fresh look at a money-making idea long considered politically taboo: [...]
John Taylor on rising US debt (via FT):
I believe the risk posed by this debt is systemic and could do more damage to the economy than the recent financial crisis. To understand the size of the risk, take a look at the numbers that Standard and Poor’s considers. The deficit in 2019 is expected by the [...]
