Going The Way Of Greece
The Washington Post’s Jennifer Rubin interviewed bond wizard Bill Gross. Read it. You can bet everyone on Wall Street and every other major financial center in the world has.
This is the backdrop to the budget negotiations, and why the Speaker has to prevail on the overall number and on the riders which demonstrate a new policy direction beyond the (relatively minor) cuts in spending. There has to be evidence of a new seriousness about the size of the government on the part of the president and his Democratic allies. The massive spending addiction cannot be licked if the Congress won’t even do obvious things like get out of the radio business and stop subsidizing the left’s most favored special interest Planned Parenthood.
If the GOP cannot accomplish these small things as well as stopping the carbon regs that are already acting to slow growth just as Obamacare is, then markets will rightly conclude no serious reform will arrive before 2013 at the earliest. Gross is saying that the international markets won’t wait that long.
The clock is ticking which is why the Speaker has to stand his ground. This isn’t politics. It is the reality of the fiscal crisis.