Monday, March 15, 2010

US Doomsday Cycle going critical?

Washington Post has the story from Moody's:

Outlining the dilemma faced by policymakers in the United States, Great Britain, Germany and France, Moody's said that debt levels in the four large credit-worthy economies had reached the point at which they are at risk of being downgraded -- a step that would drive up interest rates, increase borrowing costs and mark a turn in perceptions about the world economy.
Here is the problem:
The chart identifies when the Doomsday Cycle crashes into bankruptcy. Taxpayers don't have the money, pensioneers are going to a police state, and investors are simply going to walk away.

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