The Department of Justice’s (DOJ) civil suit against credit rating agency Standard & Poor’s (S&P) shows that laws that existed well before the financial crash of 2008 were more than sufficient to deal with its potential causes. While the specific charges in this suit will need to be litigated before …
The federal budget is reaching benchmarks of astronomical proportions. Hold your applause, though; the budget trends are increasingly headed in the wrong direction. Yesterday, the Congressional Budget Office (CBO) reported that the deficit for fiscal year 2012 has surpassed the $1 trillion mark, and it anticipates the Treasury Department will …
The Fitch ratings agency announced on Wednesday that it has downgraded New Jersey’s bond rating to AA- from AA. A press release from the ratings agency placed the blame for the downgrade squarely on the state’s massive unfunded pension liabilities – estimated at about $55 billion. The release notes recent …
Wisconsinites are headed to the polls to cast their votes in the Wisconsin recall elections. The recall campaigns — against six Republicans today and against two Democratic state senators next week — have gained national attention. They stem from the fierce standoff between the Legislature earlier in the year. The …
President Barack Obama made two fundamental mistakes today in his press conference which was intended to calm the markets. First, he did not lead off with a moment of reflection on the loss of American military lives in Afghanistan over the weekend. Second, he completely missed the boat on why Standard …
The U.S. Treasury Department came out today with its Debt Position and Activity Report for July. The news is bleak. With the additional $238 billion the Treasury immediately borrowed when the debt ceiling was raised on August 2, total current debt now exceeds 2010 gross domestic product (GDP) for the …
America’s current predicament is that it borrows money from countries or individuals to finance many of its expensive obligations, including financing the $862 billion stimulus bill as well as the wars in Iraq and Afghanistan. But what would happen if America had to pay higher interest rates on all future …
