The Treasury department sees slim demand for five-year debt.
The socialists may be about to run out of other peoples’ money. Or at least they (and sadly, we) will have to pay a lot more for it.
And as a Californian, this is cheery news:
“Compared to California, I’d rather bet on Iraq,’’ Daher said. “Iraq is a country where there are still bombs going off and people getting murdered, but they are less indebted than the United States. California is likely to have more demands on its resources, and there is no miracle where California is going to have more revenue coming out of the sky. Iraq has prospects for tremendously higher revenues, if they can manage to get their act halfway together, which they seem to be doing.’’
Of course, they don’t have a dysfunctional government.
Rand,
That is not a fair comparison. After all, the left ignored Iraq for most of the war. California was not spared such things.
Too bad the WSJ still doesn’t fully get it:
After the auction, yields remained sharply higher in the broader government-bond market as corporate and other higher-risk debt drew investors away from Treasurys.
That’s my emphasis on “higher-risk”. If yields on these bonds are higher than other debt, then it’s a really good sign that the market doesn’t see the US government bonds as lower risk.
Yeah, well, if I had the money to put into Municipal Bonds I’d stay away from Ca. bonds since The Govenator is going to have to go ‘Conan the Barbarian’ on the Budget to get it to *start* to turn around and the Juan de Fuca Plate is building stress right off the coast of Washington and Oregon.
I don’t even want to think about New England with the state of the infrastructure, New Madrid, and the implosion of the Trucking Industry over the last 3 odd years. When New Madrid cuts louse every transport avenue crossing it is likely to collapse. What survives is going to be the exception, not the rule. And since everything, INCLUDING FOOD, is running on ‘Just-in-Time Logistics’….
Is any of our debt held in Greek hands? That would be irony-rich.
“Is any of our debt held in Greek hands? That would be irony-rich.”
How about CA bonds with late interest payments? Double irony lol.