Sunday, May 10, 2009

Obama-effect In The Bond Market

At The Heritage Foundation’s Foundry blog - - -

The U.S. Treasury auction of long-term bonds on Thursday was “terrible”, in the words of one Wall Street economist, with the rate on the 30 year bond jumping from 4.1 to 4.3 percent.

This is just the first sign that the debt-based Obama economic stimulus plan is about to become a major drag on the recovery, just as expected. …

The rest of the post’s here.

Should anyone be surprised sensible people are becoming reluctant to loan money on a long-term basis to a government headed by President Obama?

It wasn’t long ago that he wanted the power to change the terms of existing mortgages. And look at what he did to the Chrysler debt holders.

Anyone who doesn't know what Obama’s economic policies inevitably lead to over time should vacation this summer in a “banana republic.”

Hat tip: Instapundit