Academic

MEGAN MCARDLE ON U.S. CREDITWORTHINESS: If at any point we are not seen as the safest game in tow?

By Glenn Reynolds

MEGAN MCARDLE ON U.S. CREDITWORTHINESS:

If at any point we are not seen as the safest game in town, we will take a gigantic–the better word might be “catastrophic”–hit on our bond interest. If there’s somewhere safer to park our money, suddenly we lose the premium we currently enjoy for having bonds considered the “risk free” rate. So while our super-sterling credit rating may delay the onset of a fiscal crisis, if we ever let it get to that point, the onset may be even more sudden and disastrous than these things usually are. All the more reason to start getting our fiscal house in order now.

Not much sign of that.

Full post as published by Instapundit.com on April 09, 2010 (boomark / email).