Why don't the public care about long-term solvency?

[peilthetraveler]

Quote from walter4:


People have been self-reliant for thousands of years and can do without Wall Street, budgets, taxes, etc. Time to get rid of the parasites.

The average american doesnt stick to or even have a budget. They just spend until they run out, then if they get desperate, they put some extra expenses on a credit card.


(Hey...I think I just described how our government works)

 

[npnotesin]

Because it doesn't matter, says this economist.

http://voices.washingtonpost.com/ezra-klein/2010/05/galbraith_the_danger_posed_by.html

 

[TGregg]

Quote from npnotesin:

Because it doesn't matter, says this economist.

http://voices.washingtonpost.com/ezra-klein/2010/05/galbraith_the_danger_posed_by.html

LOL. That `tard made it into print? That's funny. Check out this quote about how he knows (for certain) that deficits do not matter:

The only possible answer is that this larger deficit would cause a rise in the interest rate. Well, if the markets thought that was a serious risk, the rate on 20-year treasury bonds wouldn't be 4 percent and change now. If the markets thought that the interest rate would be forced up by funding difficulties 10 year from now, it would show up in the 20-year rate. That rate has actually been coming down in the wake of the European crisis.

So he says that since the yields on Ts are so low, therefore there's (virtually) no risk. This greenhorn should check out a chart of Greek 2 years. It was pretty low `til all of a sudden it wasn't.

How about this turn around? If the markets thought there was a serious chance of the Dow making new highs, they'd be there already. It's the same "logic".

Don't quit your day job, Galbraith. LOL.