Monday, March 22, 2010

The Market Speaks

Markets, like small children have a way of being brutally honest. And the market is saying that the US government is borrowing too much money to be considered the best credit risk out there.

The bond market is saying that it’s safer to lend to Warren Buffett than Barack Obama.

Two-year notes sold by the billionaire’s Berkshire Hathaway Inc. in February yield 3.5 basis points less than Treasuries of similar maturity, according to data compiled by Bloomberg. Procter & Gamble Co., Johnson & Johnson and Lowe’s Cos. debt also traded at lower yields in recent weeks...

Apparently this is what happens when the government runs too big a deficit.



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