What is the true cost of the new Tea Party deficit

If we take the market at its word, a serious error, then the 1% rise across the curve means that Treasury now indefinitely pays an additional $150 billion in interest costs. So we have a bet that the Tea Party has figured out how to borrow $900 billion and use it to earn more than $150 billion a year in extra federal revenue. Does anyone really believe Michelle Bachmann is that smart?

Dave Leonhardt seems to think that Michelle can figure out how Congress can earn an extra $150 billion a year. Dave reports:

Tellingly, economists and Democratic policy experts were largely pleased with the deal. Forecasting firms on Tuesday upgraded their estimates for growth and job gains over the next two years. Economists at Goldman Sachs, who have been more negative and more accurate than most Wall Street forecasters lately, called the deal “significantly more positive” than they had anticipated.

Sure, Wall Street would just love for Congress to meet the promise, but Wall Street is not Main Street. Main Street is very wary that a dingbat like Michelle has a chance of getting a more efficient government.