Reply #29: Do the math..

[sendero]

... see what happens when you have a 14.5 trillion dollar debt and interest rates return to even moderately normal levels.

I know it is not a popular idea around here but there is a point where you cannot even pay the interest on your debt any more and we are perilously close to that point at this very moment.

The can-kicking method of solving problems has never worked when it comes to money and it is not working this time either.

The ratings agencies, EVERY DAMN ONE OF THEM, failed to do their jobs. So did the bank regulators, securities regulators, FNMA, FMAC, and a whole host of alphabet soup agencies.

To say that none of them can possibly make a correct call now is pretty simple minded.